On the high heel sandals of ugly homebuilder belief and tumbling single-family home starts and permits, experts expected existing home sales to extend their recent decline with a 1 . 1% Mother drop in June.
They were right in direction yet severely wrong in degree as existing home sales slumped 5. 4% MoM in June…
That is the 5th straight 30 days of existing home product sales declines, and home sales are down a stunning fourteen. 2% YoY.
“ Falling casing affordability continues to take a toll on potential home buyers, ” said NAR Chief Economist Lawrence Yun.
“ Both home loan rates and home prices have risen too dramatically in a short span of time. ”
The SAAR is below the full year pace for 2019.
Interestingly, properties generally remained on the market for 14 days in June, down through 16 days in May plus 17 days in June 2021. The 14 days on market are the fewest since NAR began tracking it in May 2011.
Finally, there is some good news – The number of homes for sale rose for the first time in three years on an annual basis to 1. 26 million, the highest since September. At the current sales speed it would take three months to sell all the homes in the marketplace, marking the fifth directly rise in months’ supply.
“ Finally, there are more homes in the marketplace, ” Yun added.
“ Interestingly although, the record-low pace of days on market suggests a fuzzier picture upon home prices. Houses priced right are selling rapidly, but homes priced too high are deterring prospective customers. ”
Despite hopes that prices would start to roll over – helping with affordability – the median selling price rose 13. 4% from a calendar year earlier to a fresh report of $416, 000. First-time buyers accounted for 30% of US sales last month, up from 27% in May.
The revolution will not be televised .