The latest sales report shows us that while existing home sales are still in the decline, the median prices continue to grow. We are also seeing the inventory of unsold existing homes going up. With a clear equilibrium yet to be in sight, let us see what this month’s report can tell us about a more immediate future.
Existing-home sales dropped for the fifth straight month in June, according to the National Association of REALTORS®. Three out of four major U.S. regions experienced month-over-month sales declines and one region held steady. Year-over-year sales sank in all four regions.
Total existing-home sales, https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, town homes, condominiums and co-ops, dipped 5.4% from May to a seasonally adjusted annual rate of 5.12 million in June. Year-over-year, sales fell 14.2% (5.97 million in June 2021).
Meanwhile, the median existing-home price for all housing types in June was $416,000, up 13.4% from June 2021 ($366,900), as prices increased in all regions. This marks 124 consecutive months of year-over-year increases, the longest-running streak on record.
While we are seeing the number of existing homes decline in the past month, we are seeing the prices of the existing homes being sold going up. We are also seeing a slight increase in the number of existing homes available for sale, bringing up inventory on hand to about 3 months. With inventory rising, and increasing interest rates, buyers are becoming a little more selective, and overpriced homes might not move as quickly as they have in the past few months.