ARLINGTON, Va.—Existing home sales fell at an accelerated rate of 5.4% in June to a seasonally-adjusted annualized rate of 5.12 million units, a 14.2% decrease in sales compared to last year.
“Although mortgage rates began to decline towards the end of the month, that did not prevent the largest monthly decline since February,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Supply remains tight, but conditions are improving. Inventory levels reached three months of sales at the current pace.
“That is about half of what housing analysts typically target, but it is the highest figure since August 2020,” added Long.
Based on current month sales, there were 3.0 months of supply at the end of June, with analysts considering six months of inventory a rough balance between supply and demand.
Sales by Region
Sales stayed flat in the Northeast region in June but fell in all other regions. In the West, sales fell by 11.1% on the month, followed by the South (-6.2), and the Midwest (-1.6).
Of note, the median existing-home price, non-seasonally adjusted, growth decelerated 1.9% in June to $407,600. This represents a 13.4% increase versus a year ago.
“Not coincidentally, year-over-year home price growth slowed to its lowest since September 2020,” added Long. “Much of that improvement reflects slower sales rather than growing inventory, however. Inventory levels are up only 2.4% from a year ago. Furthermore, homes for sale sold in an average of 14 days in June, which was the lowest figure on record dating back to 2011. NAFCU remains bearish on the housing market as the combination of high mortgage rates, high inflation, and a more uncertain economic outlook dissuade both buyers and sellers alike.”
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