Home sales dropped 5.4% in June, more than the expected 3%. This is a 5.4% decrease from last year. The report likely reflects home shopping in April and May when mortgage rates were above 7%. Rates have since fallen, which may boost future sales.
Inventory increased 3.1% from the previous month, reaching 1.32 million units. Despite some media claims, this increase is seasonal and doesn’t necessarily mean lower home prices. Most of the inventory is in Florida and Texas, while other areas remain below pre-pandemic levels. Inventory is up 23% from last year.
Homes sold faster, averaging 22 days on the market, down from 24 days in May. This indicates strong demand. Additionally, 29% of homes sold above the list price. First-time buyers made up 29% of sales, cash buyers 28%, and investors 16%.
In summary, while sales are currently low, improving mortgage rates and increased inventory suggest a potential rebound. Lower rates could encourage more buyers, possibly boosting home prices.
Source : https://bit.ly/3WEX2EP
By: Jon Iacono