Most recent data illustrates record home sales set a record in June.
The worldwide health crisis drove a pause in the economy this year, impacting the housing market significantly, albeit for only a short period of time. Americans 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.”
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.”
Here in Arizona, we haven’t seen such a drastic drop. This news is still significant, however, as it means even more people are looking to buy a home here in the months to come!
With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential home buyers are poised to continue taking advantage of this historic opportunity to buy a home. This fierce competition among buyers, driven largely by the lack of available inventory, is contributing to home price increases, as more buyers find 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 lack of inventory on the market:
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 still leads the way toward a full 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.