According to the National Association of Realtors (NAR), after four consecutive months of declines, existing home sales increased 1.4% from May to June, to a seasonally adjusted annual rate of 5.86 million. Lawrence Yun, NAR’s Chief Economist, pinpointed both the increase in housing starts and an influx of homeowners listing their homes for sale as the reason for the positive June report. Despite the lack of inventory, Yun went on to comment that, “Home sales continue to run at a pace above the rate seen prior to the pandemic.”
Despite inventory beginning to increase, home values continue to rise due to demand. The median existing home price for all housing types in June was $363,000, up 23.4% from June of 2020. This marked an impressive 112 months of year-over-year gains. Yun went on to reference that home values are still expected to increase, but at a slower pace as the year goes on, and will not be as impacted by lack of inventory as previously seen. Overall, amidst the various reports, the consensus amongst economists is that low mortgage rates and an improving economy will continue to drive buyer demand for housing for the foreseeable future!
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