Sales exceeded year-ago figures, but were still the second lowest of 2017
Total existing-homes sales fell 1.8% in June as a shortage in inventory muted overall activity, according recent data from the National Association of Realtors (NAR).
On a seasonally-adjusted annual rate, June saw 5.52 million completed transactions of single-family homes, townhomes, condominiums and co-ops – a decrease from the 5.62 million transactions in May. June’s sales pace is 0.7% higher than a year ago but is still the second lowest month of 2017.
"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 Lawrence Yun, NAR chief economist. "The demand for buying a home is as strong as it has been since before the Great Recession. Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines."
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The month also saw the median existing-home price grow 6.5% to $263,800 from the year-ago period. It is the 64th consecutive month of year-over-year gains.
Total housing inventory ended the month at 1.96 million existing homes up for sale, a 0.5% decline from May and 7.1% decrease from the 2.11 million inventory in June 2016. The month saw the 25th consecutive month of year-over-year inventory declines. Unsold inventory is at a 4.3-month supply given the current sales pace, compared to 4.6 months last year.
Of the June transactions, 18% were all-cash sales, a drop from the 22% in both May and June 2016. Distressed sales made up 4% of total sales, compared to 5% in May and 6% a year ago. Foreclosures were 3% of sales, while short sales were 1%.
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Single-family homes sale fell 2.0% from May, while existing condominium and co-op sales rose 1.6% from a year ago. The median existing single-family home price rose 6.6% to $266,200 from June 2016, while the median existing condo price was $245,900, up 6.5% from the year-ago median.
In terms of regional sales, only the Midwest saw an increase in existing-home sales at 3.1%. The Northeast, South and West regions saw declines in existing-home sales of 2.6%, 4.7% and 0.8%, respectively.
