According to the latest monthly data report from the National Association of Realtors., existing home sales in the United States increased in June to their highest pace in over eight years. Sales are now at their highest pace since February 2007 and have increased year on year for nine consecutive months and are 9.6% above a year ago. The cumulative effect of rising demand and limited supply has helped push the national median sales price to an all-time high of $236,400.
‘Buyers have come back in force, leading to the strongest past two months in sales since early 2007. This wave of demand is being fuelled by a year plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy,’ said Lawrence Yun, NAR chief economist.
‘June sales were also likely propelled by the spring’s initial phase of rising mortgage rates, which usually prods some prospective buyers to buy now rather than wait until later when borrowing costs could be higher,’ he added.
The median existing home price for all housing types in June was $236,400, which is 6.5% above June 2014 and surpasses the peak median sales price set in July 2006 of $230,400. June’s price increase also marks the 40th consecutive month of year on year gains.
The data also shows that total housing inventory at the end of June inched 0.9% to 2.3 million existing homes available for sale, and is 0.4% higher than a year ago when it was 2.29 million. Unsold inventory is at a five month supply at the current sales pace, down from 5.1 months in May.
Properties typically stayed on the market for 34 days in June, down from 40 days in May and the shortest time since NAR began tracking in May 2011. Short sales were on the market the longest at a median of 129 days in June, while foreclosures sold in 39 days and non-distressed homes took 33 days. Some 47% of homes sold in June were on the market for less than a month, the highest percentage since June 2013.
A regional breakdown of the figures show that in June existing home sales in the Northeast climbed 4.3% to an annual rate of 720,000, and are now 12.5% above a year ago. The median price in the Northeast was $281,200, which is 3.9% higher than June 2014.
In the Midwest, existing home sales rose 4.7% to an annual rate of 1.33 million in June, and are 12.7% above June 2014. The median price in the Midwest was $190,000, up 7.2% from a year ago.
Existing home sales in the South increased 2.3% to an annual rate of 2.2 million in June, and are 7.3% above June 2014. The median price in the South was $205,000, up 7.2% from a year ago.
Existing home sales in the West rose 2.5% to an annual rate of 1.24 million in June, and are 8.8% above a year ago. The median price in the West was $328,900, which is 9.9% above June 2014.