Steel Markets

Existing Home Sales Up 2.6 Percent in June

July 22, 2014

Existing home sales rose 2.6 percent to a seasonally adjusted rate of 5.04 million in June according to a report by the National Association of Home Realtors. Sales were at the highest rate since October 2013 but 2.3 percent below the rate in June 2013.

“Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country,” said Lawrence Yun, NAR chief economist. In order to have a balanced market, however, Yun says new home construction needs to rise by at least 50 percent to correct supply shortages, especially in the West, that are pushing prices higher.

The flat wage growth is also holding back the pace of sales, said Yun, as potential homebuyers back off on buying despite the availability of low interest rates.

June housing inventory stood at 2.23 million existing homes for sale—a 2.2 percent increase from May and 5.5 month supply at the current sales rate. The June inventory is 6.5 percent higher than levels in June 2013.

The median existing home price was 4.3 percent higher year over year at $223,300. The median number of days on the market was 44, down from 47 in May and 37 days in June 2013.

Single family home sales rose 2.5 percent to a seasonally adjusted rate of 4.43 million while condominium and co-op sales increased 3.4 percent from the previous month to 610,000 units.

Regionally, the Midwest led sales with a 6.2 percent increase, followed by the Northeast up 3.2 percent, the West up 2.7 percent and the South 0.5 percent month-over-month.