Existing Home Sales - Report
Home Sales Pace
U.S. existing-home sales pushed higher in June, according to the National Association of Realtors, as inventory grew and sales prices also made upward strides.
Total sales of existing-homes rose 2.6 percent in June to a seasonally adjusted annual rate of 5.04 million, up from 4.91 million in May. Even though sales have reached an eight month high, they are still 2.3 percent lower than last year at the same time.
"Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country. This bodes well for rising home sales in the upcoming months as consumers are provided with more choices," said NAR chief Lawrence Yun. "On the contrary, new home construction needs to rise by at least 50 percent for a complete return to a balanced market because supply shortages - particularly in the West - are still putting upward pressure on prices."
The national median home price rose in June, climbing to $223,300, up from $212,00 in May and up 4.3 percent from June 2013.
The NAR defines existing homes as all previously-owned single-family homes, townhouses, condominiums, and co-ops. The group "seasonally adjusts" the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc. to smooth out the trends.
The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units that would be sold in one year if the current rate were to continue unchanged.
Sales Pace by Region
Sales rose in every region of the country in June, led by strong gains in the Midwest. In the Northeast, sales of existing homes grew 3.2 percent to an annual pace of 640,000, up from 620,000 in May, but in a year-over-year comparison, sales there are still down 3.0 percent.
The Midwest posted an increase of 6.2 percent in June to an annual rate of 1.20 million homes, up from May's 1.13 million, but sales are down 2.4 percent from June 2013.
Sales made the smallest gain in the South, where they rose just 0.5 percent to an annual level of 2.06 million in June, up from 2.05 million. Sales there are up compared with last year, however, rising 1.0 percent over June 2013's pace.
In the West, sales grew 2.7 percent to an annual rate of 1.14 million, up from 1.11 million in May. Sales are down 7.3 percent from the previous year, though.
Sales Price by Region
Median home prices rose everywhere on a monthly basis and only fell in the Northeast on a yearly basis. In the Northeast home prices increased to a median of $269,800, up from $256,700 in May, but slipped 0.1 percent from the year before.
The median price in the Midwest rose to $177,900 in June, up from $166,300 the month before, and was up 4.6 percent from June 2013.
In the South, the median price grew to $192,600, up from May's $183,300, and up 3.4 percent from the year before.
The West saw its price increase to $301,000 in June, up from $294,000 in May, up 7.2 percent on a yearly basis.
The total number of existing-homes for sale in June increased 2.2 percent to 2.30 million properties. At the current sales pace, that represents a 5.5-month supply of homes, unchanged from May. Compared with June 2013, inventory is up 6.5 percent. Realtors consider the market to be balanced between supply and demand when there is a 6-month supply.
Data for July existing home sales, prices, and inventory will be available at the end of August.