Existing-home sales rose 1.4 percent in June to a seasonally-adjusted rate of 5.86 million units, representing a 22.9 percent increase in sales versus a year ago. NAFCU’s Curt Long analyzed the data in a new Macro Data Flashreport.
“Median price rose to a new all-time high as demand continues to force prices upwards,” said Long, NAFCU’s chief economist and vice president of research. “Mortgage rates have been heading lower, boosting demand and remaining only 23 basis points higher than the all-time low set in January.
“Demand is ebbing somewhat from its frenzied levels of earlier this year, but that is only encouraging buyers who sat out the rush to re-enter the market,” added Long. “On the supply side, housing starts rose 6.3 percent in June while permits fell 5.1 percent.”
Based on current sales, there was 2.6 months of supply at the end of June, up 0.1 months from May. Analysts consider 6 months of inventory a rough balance between supply and demand.
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