Existing home sales during June were down 2.7% from the previous month to a seasonally adjusted annual rate of 3.93 million, according to data from the National Association of Realtors (NAR). There was no change in sales on a year-over-year basis.
On regional measurement, sales declined in the Northeast, Midwest and South and rose modestly in the West from May to June, while on a year-over-year tracking sales fell in the Northeast and West while rising in the Midwest and South.
The big story in the latest data involved the $435,300 median existing home price for all housing types in June, a 2% uptick from the $426,900 price set one year earlier. The new price set a record high for the month of June and marked the 24th consecutive month of year-over-year price increases.
“The record high median home price highlights how American homeowners’ wealth continues to grow—a benefit of homeownership,” said NAR Chief Economist Lawrence Yun. “The average homeowner’s wealth has expanded by $140,900 over the past five years. Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market. More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment.”
Yun also lamented that elevated mortgage rates continue to limit sales.
“If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners,” Yun continued. “Expanding participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong income growth, healthy inventory, and a record-high number of jobs.”
