Economy: Existing Home Sales During June 2022

Wednesday, July 20, 2022

Existing Home Sales During June 2022

The Existing Home Sales report for June 2022 was released by The National Association of Realtors® (NAR®) this morning:

Predicted: 5,400,000

Actual: 5,120,000

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Change from Previous Month: -5.36% (-29,000 homes)
Change from A Year Ago: -14.24% (-85,000 homes)

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Inventory: 1,260,000 (3.0 months supply; +20.0% year-on-year.)

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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.

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Median Price: $416,000 (New Record-High)
Price Change from A Year Ago: +13.38% (+$49,100)

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Click here for historical prices and a chart.

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From Today's Report:

"...'Falling housing affordability continues to take a toll on potential home buyers,' said NAR Chief Economist Lawrence Yun. 'Both mortgage rates and home prices have risen too sharply in a short span of time.'

'Finally, there are more homes on the market,' Yun added. 'Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.'

First-time buyers were responsible for 30% of sales in June, up from 27% in May and down from 31% in June 2021. NAR's 2021 Profile of Home Buyers and Sellers reported that the annual share of first-time buyers was 34%.

All-cash sales accounted for 25% of transactions in June, the same share as in May and up from 23% in June 2021.

Distressed sales -- foreclosures and short sales -- represented less than 1% of sales in June, essentially unchanged from May 2022 and June 2021.

'If consumer price inflation continues to rise, then mortgage rates will move higher,' Yun said. 'Rates will stabilize only when signs of peak inflation appear. If inflation is contained, then mortgage rates may even decline somewhat.'..."