Existing Home Sales Post Record 20.7% Gain in June

Washington, D.C. (PPD) — The National Association of Realtors (NAR) reported existing home sales rebounded at a record 20.7% gain in June after three straight months of declines.

Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — rose to a seasonally-adjusted annual rate of 4.72 million in June. However, year-over-year sales are still down 11.3% from a year ago (5.32 million in June 2019).

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” Lawrence Yun, chief economist at NAR said. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

The median existing home price for all housing types in June came in at $295,300, up 3.5% from June 2019 ($285,400). Prices rose in every region and the increase marks 100 straight months of year-over-year gains.

Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May. But that’s still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” Mr. Yun added.

Regional Existing Home Sales

Sales in June increased in every region after falling in all back in May. Median home prices grew in each of the four major regions from one year ago.

In the Northeast, existing home sales rose 4.3%, recording an annual rate of 490,000, a 27.9% decrease from a year ago. The median price in the Northeast was $332,900, up 3.6% from June 2019.

Existing home sales in the Midwest gained 11.1% to an annual rate of 1,100,000, down 13.4% from a year ago. The median price in the Midwest was $236,900, a 3.2% increase from June 2019.

In the South, existing home sales soared 26.0% to an annual rate of 2.18 million in June, down 4.0% from the same time one year ago. The median price in the South was $258,500, a 4.4% increase from a year ago.

Existing home sales in the West skyrocketed 31.9% to an annual rate of 950,000 in June, a 13.6% decline from a year ago. The median price in the West was $432,600, up 5.4% from June 2019.