A report from the National Association of Realtors says that fewer houses were sold in June 2024 compared to May 2024. This happened because the prices of houses went up, making them more expensive. The number of houses for sale also went up, giving buyers more choices. People are taking longer to buy houses because they want to make sure they are getting a good deal. The report also says that the types of houses sold and the regions where they were sold did not change much. Read from source...
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Key points:
- Existing-home sales fell 5.4% in June to a seasonally adjusted annual rate of 3.89 million, according to the National Association of Realtors
- The median existing-home sales price jumped 4.1% from June 2023 to $426,900, the second consecutive month of record highs
- All four major U.S. regions posted sales declines, indicating a shift from a seller's market to a buyer's market
- Inventory of unsold homes rose 3.1% from the previous month to 1.32 million, the equivalent of 4.1 months' supply at the current monthly sales pace
Summary:
The National Association of Realtors reported that existing-home sales plunged in June, while the median sales price reached a new record high. The report showed a decline in sales across all four U.S. regions, suggesting a balancing of supply and demand in the housing market. However, the inventory of unsold homes also increased, indicating a possible slowdown in the market recovery.
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Article's Asset Class: Real Estate
Existing-Home Sales Slid 5.4% in June; Median Sales Price Jumps to Record High of $426,900
Key points:
- Existing-home sales fell 5.4% in June to a seasonally adjusted annual rate of 3.89 million, the lowest since November 2023.
- The median existing-home sales price rose 4.1% from June 2023 to a record high of $426,900, the twelfth consecutive month of year-over-year price gains.
- Inventory of unsold existing homes increased 3.1% from May to 1.32 million at the end of June, the equivalent of 4.1 months' supply at the current sales pace.
- All four major U.S. regions reported sales declines in June, with the Northeast and South experiencing the largest drops.
- First-time buyers accounted for 29% of sales in June, down from 31% in May but up from 27% in June 2023.
- Cash sales and distressed sales remained relatively stable at 28% and 2% of transactions, respectively.
- The 30-year fixed-rate mortgage averaged 6.77% as of July 18, down from 6.89% one week ago and 6.78% one year ago.
Summary:
The article reports on the decline in existing-home sales in June, as well as the rise in the median sales price and the inventory of unsold homes. It also provides some details on the regional, demographic, and mortgage rate trends in the housing market. The article has a neutral tone, as it presents both the positive and negative aspects of the market conditions. It does not express a clear opinion or recommendation on buying or selling homes.
- Investors should monitor the inventory levels and the sales pace of existing homes, as well as the median home price, to gauge the health of the housing market.
- Investors should also keep an eye on mortgage rates, as they significantly impact the affordability of homes and the willingness of buyers to enter the market.
- Investors should consider the regional variations in home sales and prices, as some areas may be experiencing more significant changes than others.
- Investors should be cautious of drawing broad conclusions from one month's data, as the housing market can be subject to fluctuations and seasonal patterns.
Key points:
- Existing-home sales fell 5.4% in June to a seasonally adjusted annual rate of 3.89 million, the lowest level since November 2023.
- The median existing-home price jumped 4.1% from a year ago to a record high of $426,900, the twelfth consecutive month of year-over-year price gains.
- Inventory of unsold existing homes rose 3.1% from May to 1.32 million at the end of June, the equivalent of 4.1 months' supply at the current monthly sales pace.
- All four U.S. regions posted sales declines in June, with the Northeast and Midwest experiencing the largest drops.
- First-time buyers, distressed sales, and investors accounted for a smaller share of sales in June than a year ago.
- The 30-year fixed-rate mortgage averaged 6.77% in the week ending July 18, down from 6.89% a week earlier and 6.78% a year ago.
Summary:
According to the National Association of Realtors, existing-home sales fell for the second consecutive month in June, as rising mortgage rates and high home prices dampened demand. The median home price reached a new record high, while inventory levels increased slightly. The housing market showed signs of shifting from a seller's market to a buyer's market, with more sellers receiving fewer offers and inspections. The regional variations in sales and prices were significant, with the Northeast and Midwest experiencing the sharpest declines. First-time buyers, distressed sales, and investors played a smaller role in the market than a year ago. The 30-year fixed-rate mortgage rate eased slightly from the previous week but remained elevated compared to a year ago.