Median existing home prices were busting out all over in June 2018. The median existing home price for single-family homes was $276,900, an increase of +5.2% compared with June 2017. June 2018 represents the 76th straight month of y/y gains in median single-family home prices.
Existing home sales in June 2018, however, decreased -0.6% when compared to May 2018 and dropped -2.2% when compared to June 2017. June 2018 sales represent four consecutive months of y/y decline.
These price and sales numbers come from the National Association of REALTORS® (NAR).
According to NAR’s chief economist, Lawrence Yun, “There continues to be a mismatch since spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of (declining) home sales. The root cause is without doubt severe housing shortages…coupled with the dynamic of very fast sales under contract and often multiple bids.”
Easing inventory in June increased supplies by +4.3% m/m and +0.5% y/y. This represents the first inventory increase since June 2015. Unsold inventory totaled a 4.3-month supply. Average DOM statistics landed at 26 days in June while, of the homes that did sell, 58% were on the market for less than one month.
“It’s important to note,” said Yun, “that despite a modest y/y rise in inventory, the current level is far from what’s needed to satisfy demand levels. Furthermore, it remains to be seen if this modest increase will stick…due to the brilliant economy bringing more buyers into the market and mew home construction failing to keep up.”
By region, here’s how existing home sales stacked up:
Northeast – +5.9%
Midwest – +0.8%
South – -2.2%
West – -2.6%