The most recent Existing Home Sales data was just released by the National Association of Realtors and it showed a housing market that is still very strong.
Homes are being snapped up and at higher prices as properties typically stayed on the market for 26 days in June which is down from 28 days a year ago. Fifty-eight percent of homes sold in June were on the market for less than a month.
The median existing-home price for all housing types in June was $276,900, surpassing last month as the new all-time high and up 5.2 percent from June 2017 ($263,300). June’s price increase marks the 76th straight month of year-over-year gains.
Inventory is still very tight with the total housing inventory at the end of June hit 1.95 million existing homes available for sale, and is 0.5 percent above a year ago (1.94 million) – the first year-over-year increase since June 2015. Unsold inventory is at a 4.3-month supply at the current sales pace (4.2 months a year ago) which is well-below the 6 month supply level which is considered optimal.
Lawrence Yun, Chief Economist at NAR, said “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,” added 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.”
“Realtors® throughout the country continue to stress that there’s considerable pent-up demand for buying a home among the millennial households in their market,” said Yun. “Unfortunately, they’re just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains.” Source: NAR
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