Existing-home sales declined in June but have stayed well above year-ago levels for the past two years, while the median price shows seven straight months of double-digit year-over-year increases, according to the National Association of Realtors®.
Total existing-home sales1,
which are completed transactions that include single-family homes,
townhomes, condominiums and co-ops, dipped 1.2 percent to a seasonally
adjusted annual rate of 5.08 million in June from a downwardly revised
5.14 million in May, but are 15.2 percent higher than the 4.41
million-unit level in June 2012.
NAR chief economist, said there is enough momentum in the market, even
with higher interest rates. “Affordability conditions remain favorable
in most of the country, and we’re still dealing with a large pent-up
demand,” he said. “However, higher mortgage interest rates will bite
into high-cost regions of California, Hawaii and the New York City metro
According to Freddie Mac, the national average commitment rate
for a 30-year, conventional, fixed-rate mortgage rose to 4.07 percent
in June from 3.54 percent in May, and is the highest since October 2011
when it was also 4.07 percent; the rate was 3.68 percent in June 2012.
Total housing inventory at the end of June rose 1.9 percent to 2.19
million existing homes available for sale, which represents a 5.2-month
supply2 at the current sales pace, up from 5.0 months in
May. Listed inventory remains 7.6 percent below a year ago, when there
was a 6.4-month supply. “Inventory conditions will continue to broadly
favor sellers and contribute to above-normal price growth,” Yun
The national median existing-home price3 for all housing
types was $214,200 in June, up 13.5 percent from June 2012. This marks
16 consecutive months of year-over-year price increases, which last
occurred from February 2005 to May 2006.