After three straight months of sales declines amid the coronavirus pandemic, existing home sales surged at a record pace in June, according to a report released Wednesday by the National Association of Realtors.
Total existing home sales increased 20.7 percent from May – thought remained down 11.3 percent from June 2019.
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” NAR chief economist Lawrence Yun said. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
The NAR report also found:
- The median existing-home price for all housing types in June was $295,300, up 3.5 percent from June 2019 ($285,400.
- Total housing inventory at the end of June totaled 1.57 million units, up 1.3 percent from May, but down 18.2 percent from one year ago.
- Properties typically remained on the market for 24 days in June, seasonally down from 26 days in May, and down from 27 days in June 2019.
- 62 percent of homes sold in June 2020 were on the market for less than a month.
- First-time buyers were responsible for 35 percent of sales in June, up from 34 percent in May 2020 and about equal to 35 percent in June 2019.
Yun said low inventory was a problem even before the pandemic, adding that it can lead to higher prices.
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” he said.