The latest data from the National Association of Realtors indicates a notable decrease in existing home sales in the US, showcasing a significant 5.4% drop month over month in June. This decline, which has brought the annual sales rate to 3.89 million units, falls short of market expectations as the forecast had anticipated a rate of 3.99 million units according to a Bloomberg survey.
This figure represents a roughly 3% expected decrease, further reflecting the ongoing challenges within the housing market. Despite this drop in sales volume, the median sales price of existing homes continues to rise, now standing at an unprecedented $426,900—a 4.1% increase compared to one year ago.
Remarkably, this price surge is observed across all four major US regions, suggesting a nationwide trend in escalating property values. Lawrence Yun, the Chief Economist of the National Association of Realtors, commented on the state of the market, noting, "Even as the median home price reached a new record high, further large accelerations are unlikely.
Supply and demand dynamics are nearing a balanced market condition." This suggests that while prices have surged, we may be approaching a stabilization point in housing economics. Additionally, the report highlights a substantial increase in unsold inventory, which has reached a supply level of 4.1 months.
This figure marks the highest inventory level seen in over four years, up from 3.7 months in May and 3.1 months recorded in June of the previous year. Yun's assessment reflects a shift towards a more balanced market as the inventory levels continue to climb. The single-family home sector has also shown a decrease, with sales falling to an adjusted annual rate of 3.52 million in June, down 5.1% from the preceding month and 4.3% from the same time last year.
The median price for these single-family homes has risen to $432,700, matching the overall trend of rising home prices with a 4.1% year-over-year increase. Meanwhile, the market for existing condominiums and co-operative apartments has experienced a sharper decline, with sales plummeting 7.5% month over month and a staggering 14% annually, now at an annual rate of 370,000 units.
Despite this, the median price for existing condos has also increased, rising by 2.6% to $371,700 when compared to the previous month. These developments illustrate the complexities of the housing market as it grapples with both rising prices and fluctuating sales volumes, contributing to an ongoing examination of economic conditions that homeowners and potential buyers must navigate..