This Week in Real Estate
Good Morning!
The
National Association of Realtors reported This
Week in Real Estate that the 23.4% June increase in median sales
price was the 112 consecutive month of year-over-year gains, more than 9 years
of straight increases. June also recorded a month-over-month increase in
existing-home sales ending four consecutive months of declines. Below are a few newsworthy events from the third
week of July that influence our business:
* U.S. Home Prices
Spike 23.4 Percent Annually in June. The median existing-home price for all housing types in
June was $363,300, up 23.4% from June 2020 ($294,400), as every region recorded
price jumps. This marks 112 straight months of year-over-year gains. At a broad
level, home prices are in no danger of a decline due to tight inventory
conditions, but I do expect prices to appreciate at a slower pace by the end of
the year," said Lawrence Yun, NAR’s chief economist. "Ideally, the
costs for a home would rise roughly in line with income growth, which is likely
to happen in 2022 as more listings and new construction become available.”
All-cash sales accounted for 23% of transactions in June, even with May and up
from 16% in June 2020. The median price in the West was $507,000, up 17.6% from
June 2020.
* Existing-Home Sales Expand 1.4% in
June. Existing-home sales increased in June, snapping
four consecutive months of declines, according to the National Association of
Realtors. Three of the four major U.S. regions registered small
month-over-month gains, while the fourth remained flat. However, all four areas
notched double-digit year-over-year gains. Total existing-home sales, completed
transactions that include single-family homes, townhomes, condominiums and
co-ops, grew 1.4% from May to a seasonally adjusted annual rate of 5.86 million
in June. Sales climbed year-over-year, up 22.9% from a year ago (4.77 million in
June 2020). "Supply has modestly improved in recent months due to more
housing starts and existing homeowners listing their homes, all of which has
resulted in an uptick in sales," said Lawrence Yun, NAR's chief economist.
"Home sales continue to run at a pace above the rate seen before the
pandemic.” Existing-home sales in the West rose 1.7%, registering an annual
rate of 1,200,000 in June, a 23.7% jump from a year ago.
Full Story…
https://www.nar.realtor/newsroom/existing-home-sales-expand-1-4-in-june
* Despite
Supply-Side Issues, U.S. Housing Starts Increase in June. According to a new report from the U.S. Department of
Housing and Urban Development and the U.S. Census Bureau, overall housing
starts increased 6.3 percent in June 2021 to a seasonally adjusted annual rate
of 1.64 million units. The June reading of 1.64
million starts is the number of housing units builders would begin if
development kept this pace for the next 12 months. Within this overall number,
single-family starts increased 6.3 percent to a 1.16 million seasonally
adjusted annual rate. On a regional and year-to-date basis (January through
June of 2021 compared to that same time frame a year ago), combined
single-family and multifamily starts are 41.4 percent higher in the Northeast,
25.5 percent higher in the Midwest, 21.5 percent higher in the South and 28.0
percent higher in the West. Looking at regional permit data on a year-to-date
basis, permits are 33.2 percent higher in the Northeast, 31.9 percent higher in
the Midwest, 29.6 percent higher in the South and 32.2 percent higher in the
West. The count of single-family homes currently under construction is
675,000-up 32 percent compared to a year ago.
Have a productive week.
Jason
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