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June Existing Home Sales Slip, Prices Keep Increasing08-02-13 | News

June Existing Home Sales Slip, Prices Keep Increasing

The rate of existing home sales declined 1.2 percent from May to June, but low inventories and 16 consecutive months of median price increases year-over-year indicates that market conditions remain primed for more growth.

Existing home sales in June reached an annual sales rate of 5.08 million units, well above year-ago levels but down slightly from May.

The 5.08 million-unit rate set in June fell 1.2 percent from the 5.14 million-unit rate set in March, but is 15.2 percent higher than the 4.41 million-unit rate reached in June 2012.

"Affordability conditions remain favorable in most of the country, and we're still dealing with a large pent-up demand," Lawrence Yun, chief economist for the National Association of Realtors, said in a statement. "However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market."

The median home price for all existing homes in June was $214,200, marking a 13.5 percent increase year-over-year and the 16th consecutive month that home prices have increased year-over-year. Median home prices for single-family units performed similarly, reaching $214,700 on a 13.2 percent year-over-year gain.

The inventory of existing homes fell 7.6 percent from June 2012 to 2.19 million, a 5.2-month supply at current sales rate. "Inventory conditions will continue to broadly favor sellers and contribute to above-normal price growth," Yun added.