Home Sales Rebound

With a worldwide health crisis that drove a pause in the
economy this year, the housing market was greatly impacted. Many have been
eagerly awaiting some bright signs of a recovery. Based on the latest Existing
Home Sales Report from the National Association of Realtors (NAR), June hit a
much-anticipated record-setting rebound to ignite that spark.

According to NAR, home sales jumped 20.7% from May to a
seasonally-adjusted annual rate of 4.72 million in June:

“Existing-home sales rebounded at a record pace in June,
showing strong signs of a market turnaround after three straight months of
sales declines caused by the ongoing pandemic…Each of the four major regions
achieved month-over-month growth.”

Home Sales Rebound

This significant rebound is a major boost for the housing
market and the U.S. economy. According to Lawrence Yun, Chief Economist for
NAR, the momentum has the potential to continue on, too:

“The sales recovery is strong, as buyers were eager to
purchase homes and properties that they had been eyeing during the
shutdown…This revitalization looks to be sustainable for many months ahead as
long as mortgage rates remain low and job gains continue.”

With mortgage rates hitting an all-time low, dropping below
3% for the first time last week, potential homebuyers are poised to continue
taking advantage of this historic opportunity to buy. This fierce competition
among buyers is contributing to home price increases as well, as more buyers
are finding themselves in bidding wars in this environment. The report also
notes:

“The median existing-home price for all housing types in
June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every
region. June’s national price increase marks 100 straight months of
year-over-year gains.”

The graph below shows home price increases by region,
powered by low interest rates, pent-up demand, and a decline in inventory on
the market:

Existing Home Prices

Yun also indicates:

“Home prices rose during the lockdown and could rise even
further due to heavy buyer competition and a significant shortage of supply.”

Bottom Line

Buyers returning to the market is a great sign for the
economy, as housing is still leading the way toward a recovery. If you’re ready
to buy a home this year, let’s connect to make sure you have the best possible
guide with you each step of the way.

 

Source: Real Estate with Keeping Current Matters