Existing home sales wobble again in June as prices hit record highs.

Existing home sales fell for the fifth consecutive month in June, according to the National Association of Realtors. Three of the four major US regions experienced month-over-month sales declines and one region was steady. Year-over-year sales fell in all four regions.

Total existing home sales, which include single-family homes, townhomes, condos and condominiums, fell 5.4 percent from May, compared to June’s adjusted annual rate of 5.12 million. Year-over-year, sales are down 14.2 percent (5.97 million in June 2021).

“The decline in housing affordability continues to weigh on home buyers,” said Lawrence Yun, chief economist at NAAR. “Both mortgage rates and house prices have increased significantly in a short period of time.”

The total home count at the end of June was 1.26 million units, a 9.6 percent increase from May and a 2.4 percent increase from last year (1.23 million). At the current pace of sales, unsold inventory sits at a three-month supply, up from 2.6 months in May and 2.5 months in June 2021.

With price increases across all regions, the median existing home price for all homes in June was $416,000, up 13.4 percent from June 2021 ($366,900). This represents 124 consecutive months of year-over-year growth, the longest on record.

Properties typically stay on the market for 14 days in June, down from 16 days in May and 17 days in June 2021. The 14 days on the market are the fewest since NR began tracking in May 2011. Eighty-eight percent of homes are sold. June 2022 has been on the market for less than a month.

“Finally, there are a lot of houses on the market,” Yun added. “Ironically, the record-low pace of days in the market reflects confusion over home prices. Fairly priced homes sell very quickly, but overpriced homes are deterring prospective buyers.

First-time buyers were down 30 percent for sales in June, 27 percent in May and 31 percent in June 2021. The NAR 2021 Profile of Home Buyers and Sellers – released in late 2021– reports its first annual share. – Time buyers were 34%.

All-cash sales were up 25% of transactions in June, up from the same share in May and up from 23% in June 2021.

“The June home sales are mostly bad news, but with a glimmer of hope,” said Robert Frick, corporate economist at Navy Federal Credit Union. High prices and high mortgage rates continue to frustrate homebuyers, but that commodity boom has led some sellers to cut prices on home prices. We’re seeing it get a little lighter.”

Private investors or second-home buyers, which include multiple cash sales, bought 16% of homes in June, unchanged from May and up slightly from 14% in June 2021. Distressed sales – foreclosures and short sales – represent less than 1%. Sales June, essentially unchanged from May 2022 and June 2021.

According to Freddie Mac, the average commitment rate for a 30-year, standard, fixed-rate mortgage was 5.52% in June, up from 5.23% in May. The average commitment rate across all of 2021 was 2.96 percent.

“If consumer inflation continues to rise, mortgage rates will be higher,” Yun said. “Rates are confirmed only when there are signs of high inflation. If inflation is contained, mortgage rates may decrease somewhat.

According to Realtor.com’s June Market Trends report, the largest year-over-year average price growth was in Miami (+40.1%), Orlando (+30.6%) and Nashville (+30.6%). Austin saw the largest increase in prices compared to last year (+24.7 percentage points), followed by Phoenix (+22.2 percentage points) and Las Vegas (+20.1 percentage points).

Single-family and condominium sales

Single-family home sales fell to a seasonally adjusted annual rate of 4.57 million in June, down 4.8% from 4.80 million in May and 12.8% from a year ago. The median existing single-family home price was $423,300 in June, a 13.3 percent increase from June 2021.

Sales of existing condos and condominiums came in at a seasonally adjusted 550,000 units for the year, down 9.8% from May and down 24.7% from a year earlier. The median existing condo price was $354,900 in June, an 11.5 percent year-over-year increase.

“Homeownership paves the way to financial freedom and creates long-term wealth gains that families can pass on for generations,” said NAR President Leslie Ruda Smith, a Plano, Texas Realtor and associate at Dave Perry Brokerage. – Miller Real Estate in Dallas. “We remain steadfast in our efforts to protect homeowner rights, and our members will continue to provide consumers with valuable knowledge in the home buying process.”

Regional failure

At an annual pace of 670,000 in June, home sales in the Northeast were down 11.8% from May and 11.8% from June 2021.

Existing home sales in the Midwest fell 1.6% from the previous month to an annual rate of 1,230,000 in June, a 9.6% decline from June 2021. The median price in the Midwest was $306,900, up 10.2% from a year ago.

Existing home sales in the South fell 6.2 percent to an annual rate of 2,260,000 in June, down 14.1 percent from a year earlier. The median price in the South was $374,900, a 16.8% increase from a year ago. For the tenth consecutive month, the South recorded the highest price increase compared to the other three regions.

Home sales in the West fell 11.1 percent from a month earlier. The median price in the West was $624,000, a 9.6 percent increase from June 2021.

“There are many reasons to move forward,” said Neda Navab, Compass’ president of national brokerage operations. “The same drivers of housing demand that have driven the market over the past several years, including the influx of young buyers into their homes. Years of mortgages and constant rent increases, stay put.

She added, “Buyers in the market today can get more bargaining power than they have in years, and the steadily growing share of first-time buyers is proving that they know how to lock in a long-term price on a home today. A formidable hedge against rising prices and rents. Price growth for sellers has been strong and the typical time on the market has remained surprisingly low, a sign that if their home is reasonably priced, well located and in good shape, they still expect plenty of attention from buyers.

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