• Sales of existing homes rose 1.1 percent in June from May, to 5.53 million units (SAAR), according to the National Association of Realtors, defying expectations for a modest monthly decline.
• Inventory of existing homes for sale fell 1.3 percent from May and is 5.95 percent below last year’s level.
• The seasonally adjusted price of existing homes sold in June rose 0.1 percent to $229,300, slightly below all-time highs recorded earlier this spring.

Sales of existing homes were unexpectedly strong in June, edging up for the fourth consecutive month to a nine-year high and defying expectations for a modest monthly decline. The gain is even more surprising given a continued shortage of homes available for sale, with inventory down almost 6 percent compared to the same time a year ago. Prices also rose in line with sales volumes, to a seasonally adjusted $229,300, close to all-time highs recorded earlier this spring. This is overall a positive report, and indicates strong demand for homes even with some difficulties in the market. Still, limited inventory and high prices will continue to hamper a full return to a “normal” market, especially given how good affordability is overall. This one-two punch of few homes for sale and rapidly rising prices is especially likely to impact markets in the west going forward.