Home Sales Hit a Record-Setting Rebound
With a worldwide health crisis that drove a pause in the economy this
year, the housing market was greatly impacted. Many have been eagerly
awaiting some bright signs of a recovery. Based on the latest ExistingHome Sales Report from the National Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.
According to NAR, home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June:
“Existing-home sales rebounded at a record pace in
June, showing strong signs of a market turnaround after three straight
months of sales declines caused by the ongoing pandemic…Each of the four
major regions achieved month-over-month growth.”
This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue on, too:
“The sales recovery is strong, as buyers were eager
to purchase homes and properties that they had been eyeing during the
shutdown…This revitalization looks to be sustainable for many months
ahead as long as mortgage rates remain low and job gains continue.”
With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to
continue taking advantage of this historic opportunity to buy. This
fierce competition among buyers is contributing to home price increases
as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:
“The median existing-home price for all housing types
in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose
in every region. June’s national price increase marks 100 straight
months of year-over-year gains.”
The graph below shows home price increases by region, powered by low interest rates, pent-up demand, and a decline in inventory on the market:
Yun also indicates:
“Home prices rose during the lockdown and could rise
even further due to heavy buyer competition and a significant shortage
of supply.”
Bottom Line
Buyers returning to the market is a great sign for the economy, as
housing is still leading the way toward a recovery. If you’re ready to
buy a home this year, let’s connect to make sure you have the best
possible guide with you each step of the way.