Existing-Home Sales Slipped 5.4% in June; Median Sales Price Jumps to Record High of $426,900
23 Julio 2024 - 9:00AM
Key Highlights
- Existing-home sales
faded 5.4% in June to a seasonally adjusted annual rate of 3.89
million. Sales also slumped 5.4% from one year ago.
- The median
existing-home sales price bounced 4.1% from June 2023 to $426,900 –
the second straight month it reached an all-time high and the
twelfth consecutive month of year-over-year price gains.
- The inventory of
unsold existing homes rose 3.1% from the previous month to 1.32
million at the end of June, or the equivalent of 4.1 months’ supply
at the current monthly sales pace.
Existing-home sales fell in June as the median sales price
climbed to the highest price ever recorded for the second
consecutive month, according to the National Association of
Realtors®. All four major U.S. regions posted sales declines.
Year-over-year, sales waned in the Northeast, Midwest and South but
were unchanged in the West.Total existing-home sales[1] –
completed transactions that include single-family homes, townhomes,
condominiums and co-ops – receded 5.4% from May to a seasonally
adjusted annual rate of 3.89 million in June. Year-over-year, sales
also dropped 5.4% (down from 4.11 million in June 2023).“We’re
seeing a slow shift from a seller’s market to a buyer’s market,”
said NAR Chief Economist Lawrence Yun. “Homes are sitting on the
market a bit longer, and sellers are receiving fewer offers. More
buyers are insisting on home inspections and appraisals, and
inventory is definitively rising on a national basis.”Total housing
inventory[2] registered at the end of June was 1.32 million units,
up 3.1% from May and 23.4% from one year ago (1.07 million). Unsold
inventory sits at a 4.1-month supply at the current sales pace, up
from 3.7 months in May and 3.1 months in June 2023. The last time
unsold inventory posted a four-month supply was May 2020 (4.5
months). The median existing-home price[3] for all housing types in
June was $426,900, an all-time high and an increase of 4.1% from
one year ago ($410,100). All four U.S. regions registered price
gains.“Even as the median home price reached a new record high,
further large accelerations are unlikely,” Yun added. “Supply and
demand dynamics are nearing a balanced market condition. The months
supply of inventory reached its highest level in more than four
years.”REALTORS® Confidence IndexAccording to the monthly
REALTORS® Confidence Index, properties typically remained on the
market for 22 days in June, down from 24 days in May but up from 18
days in June 2023.First-time buyers were responsible for 29% of
sales in June, down from 31% in May but up from 27% in June 2023.
NAR’s 2023 Profile of Home Buyers and Sellers – released in
November 2023[4] – found that the annual share of first-time
buyers was 32%.All-cash sales accounted for 28% of transactions in
June, unchanged from May and up from 26% one year ago.Individual
investors or second-home buyers, who make up many cash sales,
purchased 16% of homes in June, identical to May and down from 18%
in June 2023.Distressed sales[5] – foreclosures and short sales –
represented 2% of sales in June, unchanged from last month and the
previous year.Mortgage RatesAccording to Freddie Mac, the
30-year fixed-rate mortgage averaged 6.77% as of July 18. That’s
down from 6.89% one week ago and 6.78% one year
ago.Single-family and Condo/Co-op SalesSingle-family home
sales retracted to a seasonally adjusted annual rate of 3.52
million in June, down 5.1% from 3.71 million in May and 4.3% from
the prior year. The median existing single-family home price was
$432,700 in June, up 4.1% from June 2023.Existing condominium and
co-op sales tumbled 7.5% in June to a seasonally adjusted annual
rate of 370,000 units, down 14% from one year ago (430,000 units).
The median existing condo price was $371,700 in June, up 2.6% from
the previous year ($362,200).Regional Breakdown
Existing-home sales in the Northeast in June withdrew 2.1% from May
to an annual rate of 470,000, a decline of 6% from June 2023. The
median price in the Northeast was $521,500, up 9.7% from one year
earlier.In the Midwest, existing-home sales decreased 8% from one
month ago to an annual rate of 920,000 in June, down 6.1% from the
prior year. The median price in the Midwest was $327,100, up 5.5%
from June 2023.Existing-home sales in the South slid 5.9% from May
to an annual rate of 1.76 million in June, down 6.9% from one year
before. The median price in the South was $373,000, up 1.7% from
last year.In the West, existing-home sales declined 2.6% in June to
an annual rate of 740,000, identical to a year ago. The median
price in the West was $629,800, up 3.5% from June 2023.About the
National Association of Realtors®The National Association of
Realtors® is America’s largest trade association, representing 1.5
million members involved in all aspects of the residential and
commercial real estate industries. The term Realtor® is a
registered collective membership mark that identifies a real estate
professional who is a member of the National Association of
Realtors® and subscribes to its strict Code of Ethics.
# # #
For local information, please contact the local association of
Realtors® for data from local multiple listing services (MLS).
Local MLS data is the most accurate source of sales and price
information in specific areas, although there may be differences in
reporting methodology.NOTE: NAR’s Pending Home Sales Index
for June is scheduled for release on July 31, and Existing-Home
Sales for July will be released on August 22. Release times are 10
a.m. Eastern.
Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/newsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
[1] Existing-home sales, which include single-family, townhomes,
condominiums and co-ops, are based on transaction closings from
Multiple Listing Services. Changes in sales trends outside of MLSs
are not captured in the monthly series. NAR benchmarks home sales
periodically using other sources to assess overall home sales
trends, including sales not reported by MLSs.Existing-home sales,
based on closings, differ from the U.S. Census Bureau’s series on
new single-family home sales, which are based on contracts or the
acceptance of a deposit. Because of these differences, it is not
uncommon for each series to move in different directions in the
same month. In addition, existing-home sales, which account for
more than 90% of total home sales, are based on a much larger data
sample – about 40% of multiple listing service data each month –
and typically are not subject to large prior-month
revisions.
The annual rate for a particular month represents what the total
number of actual sales for a year would be if the relative pace for
that month were maintained for 12 consecutive months. Seasonally
adjusted annual rates are used in reporting monthly data to factor
out seasonal variations in resale activity. For example, home sales
volume is normally higher in the summer than in the winter,
primarily because of differences in the weather and family buying
patterns. However, seasonal factors cannot compensate for abnormal
weather
patterns.
Single-family data collection began monthly in 1968, while condo
data collection began quarterly in 1981; the series were combined
in 1999 when monthly collection of condo data began. Prior to this
period, single-family homes accounted for more than nine out of 10
purchases. Historic comparisons for total home sales prior to 1999
are based on monthly single-family sales, combined with the
corresponding quarterly sales rate for condos.
[2] Total inventory and month’s supply data are available back
through 1999, while single-family inventory and month’s supply are
available back to 1982 (prior to 1999, single-family sales
accounted for more than 90% of transactions and condos were
measured only on a quarterly basis).
[3] The median price is where half sold for more and half sold
for less; medians are more typical of market conditions than
average prices, which are skewed higher by a relatively small share
of upper-end transactions. The only valid comparisons for median
prices are with the same period a year earlier due to seasonality
in buying patterns. Month-to-month comparisons do not compensate
for seasonal changes, especially for the timing of family buying
patterns. Changes in the composition of sales can distort median
price data. Year-ago median and mean prices sometimes are revised
in an automated process if additional data is received.The national
median condo/co-op price often is higher than the median
single-family home price because condos are concentrated in
higher-cost housing markets. However, in a given area,
single-family homes typically sell for more than condos as seen in
NAR’s quarterly metro area price reports.
[4] Survey results represent owner-occupants and differ from
separately reported monthly findings from NAR’s REALTORS®
Confidence Index, which include all types of buyers. The annual
study only represents primary residence purchases, and does not
include investor and vacation home buyers. Results include both new
and existing homes.
[5] Distressed sales (foreclosures and short sales), days on
market, first-time buyers, all-cash transactions and investors are
from a monthly survey for the NAR’s REALTORS® Confidence Index,
posted at nar.realtor.
Troy Green
National Association of Realtors®
tgreen@nar.realtor