June Existing Home Sales: A Return to Growth

• June existing home sales were up 1.4% from May, to 5.86 million (SAAR), according to the National Association of Realtors. Sales were up 22.9% from the pandemic-influenced June 2020.
• The median existing-home price for all housing types in June was $363,300, up 23.4% from June 2020.
• Inventory rose 3.3% from May, to 1.25 million for-sale homes.

June's small bump in existing home sales is welcome news for the housing market after four straight monthly declines, and a sign that a return to modest sales growth may be on the horizon. The combination of low mortgage interest rates, an improving economy and demographic factors continues to stoke buyer demand and fuel market competition. But historic price growth nationwide has weakened some households’ ability to afford their next home and a shortage of available inventory appears to have left some would-be buyers discouraged. All told, while demand for homes is still strong, these constraints are limiting some sales activity and bringing volume somewhat closer to historic norms after soaring to 15-year highs in late 2020 and early 2021. Still, despite the recent slowdowns, existing home sales volume remains above pre-pandemic levels and recent increases in inventory and May’s strong jump in pending sales could signal more improvements to come. Sales volume may not be living up to the lofty expectations set earlier this year, but is staying solid as the summer rolls on.