June home sales drop to the slowest pace in 14 years as short supply chokes the market

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June home sales declined 18.9% compared with last year. That's the slowest sales pace for June since 2009.

June home sales were 18.9% lower compared with last year. That is the slowest sales pace for June since 2009.A house is for sale in Arlington, Virginia, July 13, 2023.Sales of pre-owned homes dropped 3.3% in June compared with May, running at a seasonally adjusted annualized rate of 4.16 million units, according to the National Association of Realtors.

"There are simply not enough homes for sale," said Lawrence Yun, chief economist for the Realtors. "The market can easily absorb a doubling of inventory." Sales are unlikely to recover any time soon, as mortgage rates weigh heavy on affordability. The Realtors measure June sales based on closings, so contracts that were Likely signed in April and May. Mortgage rates hung in the mid 6% range during that time and then shot up over 7% at the very end of May. Rates stayed in the 7% range for all of June, as home prices rose.

 

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