by Sales also fell 3.3% from May, reversing a slight uptick in earlier spring activity
WASHINGTON — Data released this week from the National Association of Realtors shows that existing home sales fell 18.9% compared to last year and 3.3% from May.
Total existing home sales were 4.16 million, down from 5.13 million in June 2022, a nearly 20% drop. Sales fell about 3.3% from May to June, from 4.3 million units to 4.16 million, reversing a slight uptick seen in the April to May sales activity.
The figures represent completed transactions that include single-family homes, town homes, condominiums and co-ops.
All four regions of the country posted year-over-year declines. May to June gains were posted in the Northeast but were down in the South and West. Sales in the Midwest remained even with May.
Sales also were lower for the full first half, noted NAR Chief Economist Lawrence Yun.
“The first half of the year was a downer for sure with sales lower by 23%,” Yun said. “Fewer Americans were on the move despite the usual life-changing circumstances. The pent-up demand will surely be realized soon, especially if mortgage rates and inventory move favorably.”
The association also said that the median existing home sales price of $410,200 for June was the second highest price ever recorded since 1999 when it began tracking the data. It also was .9% less than the all-time high of $413,800 from one year ago and the third time that the monthly median sales price was higher than $400,000.
“Home sales fell, but home prices have held firm in most parts of the country,” Yun noted, adding, “Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month.”
Home sales are a key economic indicator for a part of the economy that has perhaps the biggest impacts on home furnishings sales. Even those moving to an existing home versus new construction, for example, often find they have a need for new furniture that suits the layout of their new home.
By region, the activity was as follows:
In the Northeast, existing home sales rose 2% from May to an annual rate of 510,000 in June. This was down 21% from June 2022. The median price in the region was $475,300, up 4.9% from June 2022.
In the Midwest, June sales totaled 990,000 in June, which was down 19.5% from June 2022, and unchanged from May. The median price in this region was $311,800, up 2.1% from June 2022.
In the South, there were 1.19 million existing homes sold, which was down 16.2% from June 2022 and down 5.4% from May. The median price here was $366,600, down 1.2% from June 2022.
In the West, existing home sales totaled 750,000 in June, down 22.7% from June 2022 and down 5.1% from May. The median price was $606,500, down 3.4% from June 2022.
Other highlights of the report were as follows:
+ Total housing inventory at the end of June was 1.08 million units, unchanged from May but down 13.6% from the 1.25 million reported a year ago. Unsold inventory was at a 3.1-month supply based on current sales, which was up from 3 months in May and 2.9 months in June 2022. “There are simply not enough homes for sale,” Yun noted, adding that the market can “easily absorb a doubling of inventory.”
+ Properties were on the market for about 18 days in June, which was up from 14 days in June 2022 and unchanged from May, while 76% of the homes sold in June were on the market for less than a month.
+ First-time home buyers were responsible for 27% of sales in June, which was down from 30% in June 2022 and down from 28% in May. The annual share of first-time buyers was 26%, which the NAR said was the lowest since it began tracking the data.
+ All-cash sales represented 26% of transactions in June, which was up from 25% from both May and June 2022.
+ Individual investors, or second-home buyers purchased 18% of homes in June, which was up from 16% in June 2022 and up from 15% in May. These buyers often represent many cash sales, the NAR said.
+ Distressed sales, or foreclosures and short sales, represented about 2% of sales in June, unchanged from May and June 2022.
+ Single-family home sales decreased to a seasonally adjusted rate of 3.72 million in June, which was down 3.4% from 3.85 million in May and 18.8% from June 2022, while existing condominium and co-op sales totaled 440,000, which was down 20% from June 2022 and down 2.2% from May. The median price for single-family homes was $416,000 in June, down 1.2% from June 2022, while the median price for a condo was $361,600 in June, up 1.9% from June 2022.
+ The 30-year fixed-rate mortgage averaged 6.96% as of July 13, up from 6.81% the prior week and up from 5.51% a year ago.
