Existing Home Sales Rise to Pre-Recession Level

Existing home sales, as reported by the National Association of Realtors, increased in June to the highest level since February 2007. Although the June percent share of first-time buyers declined from May to 30%, that share remained at or above 30% for the fourth consecutive month. Total existing home sales increased by 3.2% in June to a seasonally adjusted rate of 5.49 million units combined for single-family homes, townhomes, condominiums and co-ops, up from a downwardly revised 5.32 million units in May. Junel existing sales were up 9.6% from the same period a year ago, and have increased year-over-year for nine consecutive months.

Existing sales increased in all regions, ranging from 4.7% in the Midwest to 2.3% in the South. Year-over-year, all four regions also increased, ranging from 12.7% in the Midwest to 7.3% in the South.
Total housing inventory in June increased by 0.9% from May, and is very slightly above its level a year ago. At the current sales rate, the June unsold inventory represents a 5.0-month supply, lower than the 5.1-month and 5.3-month supply the previous two months. Some 47% of existing homes in June were on the market for less than a month, the highest share since June 2013.
The distressed sales share decreased to 8% from 10% in May, and are well below the 11% share during the same month a year ago. Distressed sales are defined as foreclosures and short sales sold at deep discounts. June all cash sales fell to 22%, matching the lowest share since December 2009. Individual investors purchased a 12 share of homes in June, down from 16% during June of 2014. The accelerating withdrawal of cash investors will create more opportunity for first-time buyers.
The June median sales price of $236,400 was 6.5% above the same month a year ago, represented the 40th consecutive month of year-over-year price increases, and surpassed the peak median sales price set in July 2006. The median condominium/co-op price increased to $226,500 in June, and was up 5.5% from the same month a year ago.
The Pending Home Sales Index increased for the fifth consecutive month in May. The continued increase in existing sales is expected to increase throughout the year, as first-time buyers return to the market.

Article courtesy of NAHB's Eye on Housing