Home sales slump in June, signaling buyer's market as prices hit another record high

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Real Estate,Economy,Home Sales

“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers,” said Lawrence Yun, the NAR’s chief economist.

Home sales dropped 5.4% last month to a seasonally adjusted annual rate of 3.89 million units, the lowest level since December, the National Association of Realtors said on Tuesday. Economists polled by Reuters had forecast home resales would slip to a rate of 4 million units.

The average rate on a 30-year fixed-rate mortgage dropped to a four-month low of 6.77% last week, down from 6.89% and matching the average during the same period in 2023, data from mortgage finance agency Freddie Mac showed. It has eased from a six-month high of 7.22% in early May amid hopes that the Federal Reserve will deliver a long-awaited interest rate cut in September.

Sales tumbled 5.9% in the densely populated South. They plunged 8.0% in the Midwest, which is considered the most affordable region. Sales fell 2.1% in the Northeast and decreased 2.6% in the West.Housing inventory increased 3.1% to 1.32 million units last month. Supply jumped 23.4% from one year ago.

At June’s sales pace, it would take 4.1 months to exhaust the current inventory of existing homes. That was the highest level in more than four years and was up from 3.1 months a year ago.“Supply and demand dynamics are nearing a balanced market condition,” Yun said.

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June home sales slump, pointing to a buyer's market as supply increasesThe median price of an existing home sold in June was $426,900, an increase of 4.1% year over year
Fonte: CNBC - 🏆 12. / 72 Leggi di più »