Existing-home sales increased (3.2%) in June to their highest pace (5.49 million) in over eight years (5.79 million in February 2007). 

Sales have now increased year-over-year for nine consecutive months and are 9.6% above a year ago (5.01 million).  

Backed by June’s solid gain in closings, this year’s spring buying season has been the strongest since the downturn. 

Demand is being fueled by a year-plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy. June sales were also likely propelled by the spring’s initial phase of rising mortgage rates.

However, the cumulative effect of rising demand and limited supply has pushed the national median sales price to an all-time high (July 2006, $230,400). Limited inventory amidst strong demand continues to push home prices higher, leading to declining affordability for prospective buyers.

Home Prices
The median existing-home price in June was $236,400, which is 6.5% above June 2014. This marks the 40th consecutive month of year-over-year gains.

Inventory/Time on Market
Total housing inventory at the end of June inched 0.9% to 2.30 million existing homes available for sale, and is 0.4% higher than a year ago (2.29 million). Unsold inventory is at a 5.0-month supply at the current sales pace, down from 5.1 months in May. 

 

Source: National Association of REALTORS®