Housing News

Existing Home Sales Bounce Back After Four Months of Decline

All the data indicated that existing home sales would rebound in June…and it looks like that's just what happened.

According to a new report from the National Association of Realtors, existing home sales increased in June, breaking a four-month streak of declines.

The increase was a modest one, with existing home sales only increasing 1.4% in June over May, but an increase is an increase. And that's important after existing home sales had declined for four straight months.

According to NAR Chief Economist Lawrence Yun, the inventory concerns of much of the year have begun to dissipate somewhat.

"Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales," Yun said. "Home sales continue to run at a pace above the rate seen before the pandemic."

As Yun noted, existing home sales in 2021 are exceeding what was seen last year. In June, existing home sales were up 22.9% from June 2020.

Another thing that continues to be up is home prices, as the median sales price for an existing home was $363,300 in June, an increase over the all-time record of $350,300 seen in May.

"At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year," Yun said. "Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available."