June Existing Sales Slow


Existing home sales decreased 1.8 % in June, but remain 0.7% above the pace a year ago. Some 54% of homes sold last month were on the market less than a month as buyers overcame low inventory and higher prices. June inventory declined 0.5%, and remains 7.1% lower than a year ago, having fallen year-over-year for the 25th consecutive month. The National Association of Realtors (NAR) reported that at the current sales rate, the June unsold inventory represents a 4.3-month supply, down from a 4.6 -month supply a year ago. June existing sales reached a seasonally adjusted rate of 5.52 million units. Total existing home sales include single-family homes, townhomes, condominiums and co-ops.

June existing sales increased 3.1% in the Midwest, but fell 0.8% in the West, 2.6% in the Northeast and 4.7% in the South. Year-over-year, the West was up 2.5% and the Northeast by 1.3%, while the Midwest and South remained unchanged.

Homes stayed on the market for 28 days in June, up slightly from 27 days in May, but down from 34 days a year ago. The June first-time home buyer share was 32%, down from 33% in May and unchanged from a year ago.

At the lowest level since June 2009, the June all-cash sales share was 18%, down from 22% in May and the level one year ago. Individual investors purchased a 13% share of sales in June, down from 16% in May and unchanged from a year ago. Some 56% of those investors paid cash in June, compared to 64% in May.

The June median sales price jumped 6.5% from last year to $263,800, representing the 64th consecutive month of year-over-year increases. The June median condominium/co-op price of $245,900 was also up 6.5% from the same month a year ago.

May pending sales dipped for the third consecutive month, so the June decline in existing sales was not unexpected. NAR reported that many markets face severe housing shortages. However, builder confidence remains solid, and single-family starts bounced back in June as both jobs and incomes continue to grow.

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