Existing home sales were skewed across the country by region according to a recent report by the National Association of Realtors (NAR). Two of the four primary regions experienced slow downs in June’s sales while the remaining two saw increases. The South and West saw declines where the North and East showed small gains.
“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist. Yun says the nation is in the midst of a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
The median home price for all property types for the month of June was up by 4.3% over last year at this same time period. Continuing on the path of price increases, this was the 88th month in a row for price gains.
Housing inventory levels increased from the month of May to June, but are now at the same level as they were a year ago at the same time. Available inventory is at a 4.4 month supply at the current sales pace.
Days on Market
Properties were on the market for an average of 27 days in the month of June which was up from 26 in May as well as June of 2018. During June, 56% of the properties that sold in the month were on the market for less than one month.
The average loan rate for a 30 year conventional mortgage decreased to 3.80% per Freddie Mac. This was down from 4.07% in May. By perspective, the average rate for all of 2018 was 4.54% so lately rates have been very favorable.