American home sales broke their losing streak last month, with sales finally climbing. National Association of Realtors (NAR) data shows existing-home sales jumped in June. The increase breaks the declining trend over the past 4 months, which has seen sales slip lower. At the same time, inventory climbed even more quickly than sales. Inevitably this should lead to slower price growth, but not last month. Prices still advanced. By a lot.
Existing-Home Sales Break 4-Month Losing Streak
US existing-home sales came in higher last month, breaking the volume losing streak. The seasonally adjusted annual rate (SAAR) for home sales reached 5.86 million in June, up 1.4% from a month before. Compared to a year before, sales are now 22.9% higher. It was the first month since January to see home sales rise, but the volume is still below the peak seen this past March.
US Existing-Home Sales
The seasonally adjusted annual rate (SAAR) of existing-home sales in the US.
Source: NAR; Better Dwelling.
All but one region has seen increases in home sales on a monthly basis. Increases were observed in the Northeast (2.8%), Midwest (3.1%), and West (1.7%). As for the South, home sales were flat. The last one is worth watching if you’re in the region. Home sales there stalled at the lowest level since August of last year.
US Existing-Home Sales By Region
The monthly percent change in the seasonally adjusted annual rate (SAAR) of existing-home sales for May, broken down by region.
Source: NAR; Better Dwelling.
US Home Sellers Increased Faster Than Buyers
The number of people looking to sell is also on the rise these days, with inventory jumping to a multi-month high. There were 1.25 million homes listed for sale in June, up 3.3% from a month before. Compared to a year ago, it’s l8.8% lower than that period. Annual comparisons may not be all that helpful, due to the base effect. The amount is still the highest level since November 2020 though.
Months of Inventory Rises To Highest Level Since June
The market isn’t exactly overflowing with inventory, but it’s not nearly as tight as it was a few weeks ago. NAR reported 2.6 months of inventory in June, 4.0% higher than the month before. It was the most inventory seen since September 2020, back when price growth was a little slower.
Most of US Home Price Gains Happened From January
Was, being the keyword in regards to slower price growth, because it certainly isn’t the case today. The median home price reached US$363,300 in June, up 23.4% from a year before. Annual growth is huge, but this is really two different halves of the year. In the first half, from last June to December 2020, home prices climbed 5%. Over the next six months ending in June 2021, prices launched another 17.49% higher.
US existing-home sales climbed higher, but inventory is now rising even faster. Inevitably this should provide a little relief from the rapid price growth. Though it didn’t do much last month, which was likely carried by the massive momentum this year.
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