Economy: Existing Home Sales During June 2021

The Existing Home Sales report for June 2021 was released by The National Association of Realtors® (NAR®) this morning:

Predicted: 5,500,000
Actual: 5,860,000

Change from Previous Month: +1.384% (+80,000 homes)
Change from One Year Previous: +22.851% (+1,090,000 homes)

==========

Inventory: 1,250,000 (2.6 months supply)

==========

The yellow-highlighted, "actual" figure above represents the preliminary, seasonally adjusted annualized sales count of existing homes, co-ops and condominiums for the indicated month. The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

------------------------------------------------------

Median Price for A Used Home During June 2021: $363,300

Change from One Year Previous: +23.404% (+$689,000)

---------

Average Price for A Used Home During June 2021: $381,800

Change from One Year Previous: +16.084% (+$529,000)

------------------------------------------------------

==========

Click here for historical prices and a chart.

==========

From Today's Report:

"...'Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales,' said Lawrence Yun, NAR's chief economist. 'Home sales continue to run at a pace above the rate seen before the pandemic.'

Total housing inventory at the end of June amounted to 1.25 million units, up 3.3% from May's inventory and down 18.8% from one year ago (1.54 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May's 2.5-month supply but down from 3.9 months in June 2020.

The median existing-home price for all housing types in June was $363,300, up 23.4% from June 2020 ($294,400), as every region recorded price jumps. This marks 112 straight months of year-over-year gains.

'At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,' Yun said. 'Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.'

Properties typically remained on the market for 17 days in June, unchanged from May and down from 24 days in June 2020. Eighty-nine percent of homes sold in June 2021 were on the market for less than a month.

First-time buyers accounted for 31% of sales in June, also even with May but down from 35% in June 2020. NAR's 2020 Profile of Home Buyers and Sellers -- released in late 2020 -- revealed that the annual share of first-time buyers was 31%.

Individual investors or second-home buyers, who account for many cash sales, purchased 14% of homes in June, down from 17% in May and up from 9% in June 2020. All-cash sales accounted for 23% of transactions in June, even with May and up from 16% in June 2020.

Distressed sales – foreclosures and short sales – represented less than 1% of sales in June, equal to May's percentage but down from 3% in June 2020.

'Huge wealth gains from both housing equity and the stock market have nudged up all-cash transactions, but first-time buyers who need mortgage financing are being uniquely challenged with record-high home prices and low inventory,' Yun explained. 'Although rates are favorably low, these hurdles have been overwhelming to some potential buyers.'

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.98% in June, slightly up from 2.96% in May. The average commitment rate across all of 2020 was 3.11%..."