There was a 1.8% decline in existing home sales last month as tight supply continued to challenge buyers
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There was a 1.8% decline in existing home sales last month as tight supply continued to challenge buyers.
The National Association of Realtors says that sales eased to a seasonally adjusted annual rate of 5.52 million in June from 5.62 million in May. Although it was the second lowest rate of sales this year, it was 0.7% above that of June 2016.
"Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that's straining their budget," said NAR chief economist Lawrence Yun.
He added that demand is as strong as it was before the Great Recession but many would-be buyers are constrained by a severe shortage of available homes. First time buyers made up 32% of buyers, down from 33% in May.
The median price for existing homes was up 6.5% in June from a year earlier to reach $263,800, a new peak after 64 consecutive months of increase.
Inventory continued to edge lower though with 1.96 million homes available, down 0.5% from May and down 7.1% from June 2016. Unsold inventory is at 4.3 months, down from 4.6 months a year ago.
"It's shaping up to be another year of below average sales to first-time buyers despite a healthy economy that continues to create jobs," said Yun. "Worsening supply and affordability conditions in many markets have unfortunately put a temporary hold on many aspiring buyers' dreams of owning a home this year."
The National Association of Realtors says that sales eased to a seasonally adjusted annual rate of 5.52 million in June from 5.62 million in May. Although it was the second lowest rate of sales this year, it was 0.7% above that of June 2016.
"Closings were down in most of the country last month because interested buyers are being tripped up by supply that remains stuck at a meager level and price growth that's straining their budget," said NAR chief economist Lawrence Yun.
He added that demand is as strong as it was before the Great Recession but many would-be buyers are constrained by a severe shortage of available homes. First time buyers made up 32% of buyers, down from 33% in May.
The median price for existing homes was up 6.5% in June from a year earlier to reach $263,800, a new peak after 64 consecutive months of increase.
Inventory continued to edge lower though with 1.96 million homes available, down 0.5% from May and down 7.1% from June 2016. Unsold inventory is at 4.3 months, down from 4.6 months a year ago.
"It's shaping up to be another year of below average sales to first-time buyers despite a healthy economy that continues to create jobs," said Yun. "Worsening supply and affordability conditions in many markets have unfortunately put a temporary hold on many aspiring buyers' dreams of owning a home this year."
