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.