July marked the second consecutive month of existing-home sale increases, according to the latest data from the National Association of REALTORS® (NAR).
Total existing-home sales increased 2.0% from June to a seasonally adjusted annual rate of 5.99 million in July. Year-over-year, sales bumped up 1.5% (from 5.90 million in July 2020).
Single-family home sales increased to a seasonally adjusted annual rate of 5.28 million in July, up 2.7% from 5.14 million in June and down 0.8% from last year. Existing condo and co-op sales posted a seasonally adjusted annual rate of 710,000 units in July, down from 730,000 in June and up 22.4% from last year.
Three of the four major U.S. regions posted modest month-over-month gains, with the fourth remaining flat. Year-over-year, two regions saw increases, one experienced a decline and one was unchanged.
By Region:
Midwest
Existing-Home Sales: 1.38 million (-1.4% YoY)
Median Price: $275,300 (+13.1% YoY)
Northeast
Existing-Home Sales: 740,000 (+12.1% YoY)
Median Price: $411,200 (+23.6% YoY)
South
Existing-Home Sales: 2.63 million (+1.2% YoY)
Median Price: $305,200 (+14.4% YoY)
West
Existing-Home Sales: 1.24 million (flat YoY)
Median Price: $508,300 (+12.5% YoY)
What it means:
“We see inventory beginning to tick up, which will lessen the intensity of multiple offers. Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available.”
“Although we shouldn’t expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve. In the meantime, some prospective buyers who are priced out are raising the demand for rental homes and thereby pushing up the rental rates.” — NAR Chief Economist Lawrence Yun
“As more homes come on the market, opportunities for prospective buyers continue to increase in regions across the country. But even though we are beginning to see some normalcy return, NAR continues to work alongside legislators and policymakers to ensure we are doing everything we can to boost the supply of safe, affordable housing in America.” — NAR President Charlie Oppler
“Low mortgage rates continue to be an important factor helping eager young homebuyers looking for a place to call their own. Despite the ongoing challenges of today’s housing market, including a limited number of homes on the market, lightning-fast home sales and competition from investors with deep pockets, many buyers are finding ways to persist until they find and close on a home.
“At the same time, plenty of prospective buyers may be considering whether to pause rather than continue with their search. Buyers evaluating their options should know that as students head back to school and fall arrives, we typically see a larger drop off in demand and a more moderate decline in seller activity. This usually results in a seasonal reprieve in the competition buyers face and creates opportunities for persistent home hunters. Although we didn’t see this sweet spot last fall as buyers were making up for time lost to lockdowns, there are signs that we’ll see it this year.
“Continued economic recovery is key to maintaining sales momentum, and anything that disrupts progress, such as rising COVID cases, could knock home sales off course. We’ve already seen a pullback in builder confidence and mixed construction data as builders balance buyer interest with supply challenges, rising costs, and concerns about the future of the economy and housing affordability. Still, with listing price growth beginning to recalibrate in response to shifting supply and demand dynamics, we should see a steady pace of home sales over the next few months, especially if mortgage rates remain low.” — realtor.com Chief Economist Danielle Hale
For more information, please visit www.nar.realtor.
