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Sales of existing homes spiraled 3.3 percent in June, plunging to a 14-year low and prompting economists to warn of dangerously low inventory, according to data released Thursday by the National Association of Realtors.
Existing-home sales fell to a seasonally adjusted rate of 4.16 million — a whopping 18.9 percent lower than a year ago — as the median sales price climbed to $410,000, or 0.9 percent below than the highest price recorded by NAR. June also marked the third time in recorded history the monthly median sale price rose above $400,000, with the other two occasions happening last year.
“The first half of the year was a downer for sure with sales lower by 23%,” NAR Chief Economist Lawrence Yun said in a statement. “There are simply not enough homes for sale.”
Homebuyers continue to struggle amid climbing prices and spiking mortgage rates, both of which have kept would-be sellers on the sidelines while leading to a holding pattern among buyers and sellers as more new homes are built and the Fed considers additional interest rate hikes this year to tamp down inflation.
Homeowners who have chosen to list their homes in this environment, however, are seeing heightened demand among buyers and frequent multiple-offer situations due to scarce inventory, according to the report. Seventy-six percent of the homes sold in June were on the market for less than a month while the typical home sold in June was on the market for 18 days.
The total housing inventory measured at the end of June was 1.08 million units, the same amount registered in May but down 13.6 percent from a year ago.
“Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month,” Yun said.
Home sales grew 2 percent in the Northeast to an annual rate of 510,000, down 21.5 percent from June 2022, while the median price grew 4.9 percent annually to $475,000. Home sales in the Midwest were unchanged from last month at an annual rate of 990,000 — down 19.5 percent from a year ago while prices grew 2.1 percent from a year ago.
In the South, home sales dropped 5.4 percent from May, and at an annual rate of 1.91 million were 16.2 percent lower than they were a year ago while the median price fell 1.2 percent to $366,600. The West saw home sales decline 5.1 percent from the previous month to an annual rate of 750,000 — 22.7 percent lower than a year ago. The median sale price fell 3.4 percent to $606,500 during that same period.
