The median existing home values in June was $276,000 – the 76th straight month of year-over-year gains. Existing home sales dropped 0.6% to a seasonally-adjusted 5.38 million in June, declining for the third consecutive month, as reported by the latest data from the National Association of Realtors (NAR). Home sales dropped 2.2% from last June, marking the 4th consecutive month of year-over-year decline.
Home values reach all-time high as sales decline for third consecutive month
“There continues to be a mismatch since the spring between the growing level of home-buyer demand in most of the country in relation to the actual pace of home sales, which are declining,” said Lawrence Yun, NAR’s chief economist. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market.”
The median existing home hit $276,900 – a new all-time high – up 5.2% from a year ago as well as the 76th straight month of year-over-year gains.
“What is for sale in most areas is going under contract very fast and in many cases, has multiple offers,” Yun said. “This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
Total housing inventory is up 4.3% month-over-month and 0.5% year-over-year, the first such increase since June 2015. Unsold inventory is presently at a 4.3-month supply and homes typically stayed on the market 26 days in June. Of the homes that did sell, 58% were on the market for less than 30 days.
“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels,” said Yun. “Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”
Regionally, existing home sales climbed 5.9 % in the northeast and 0.8% in the Midwest. Existing home sales fell 2.2% in the south and 2.6% in the west.
