June existing home sales dropped, continuing a decline that began in April and carried through May. If three months constitutes a trend, then we are seeing a definite sales slowdown, but all is not equal across the country. More on that later. Prices increased again, as they have for over 6 years. The pace of sales was the same as May, with days on the market well below 30. The median existing home price increased nationally, hitting another all-time high. Lack of inventory is driving the market, with no end in sight. Here’s more regarding the June 2018 Housing Market Recap.
June existing home sales dropped by 0.6 percent compared to May, and were 2.2 percent lower than June 2017, according to the National Association of Realtors® (NAR) June Existing Home Sales Report, released July 23rd. This is the fourth month of year-over-year decreases.
Inventory rose from May to June by 4.3 percent, reflecting the stronger summer selling months, and was up slightly from a year ago (0.5 percent) marking the first year-over-year gain since June 2015, but it’s not enough to meet demand. The supply of unsold inventory was 4.3 months, up from 4.2 months a year ago.
Home prices continued to increase year-over-year. The median price of existing homes sold in June was a record-high $276,900, up 5.2 percent from June 2017 ($263,300). We’ve now reached 76 consecutive months of year-over-year increases.
Days on the market (DOM) were unchanged from May, staying at 26. A year ago, homes typically stayed on the market for 28 days, so the sales pace has increased slightly year-over-year.
According to NAR chief economist Lawrence Yun, “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” he said. “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
There are regional differences. The Northeast and Midwest saw increases in sales while the South and West fell. Prices rose across the country. The biggest sales jump was in the Northeast – 5.9 percent – and the biggest price increase was in the West – 10.2 percent. Midland, TX remained at the top of the hottest metro areas list (measured by days on the market/listing views per property). The rest of the Top 10 are Columbus, OH, Boston-Cambridge-Newton, MA-NH, Fort Wayne, IN, Boise City, ID, San Francisco-Oakland-Hayward, CA, Vallejo-Fairfield, CA, Buffalo-Cheektowaga-Niagara Falls, NY, Colorado Springs, CO and Detroit-Warren-Dearborn, MI.
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