The median price of an existing home in the United States hit a new high of $ 363,300 in June, up 23.4% from a year ago and breaking the previous record set the month before, according to the latest data from the National Association of Realtors.
Existing home sales rose in June as well, rebounding after four straight months of decline as more inventory hit the market for hungry buyers.
“Supply has improved slightly in recent months due to increased housing starts and the number of existing homeowners advertising their homes, which has resulted in increased sales,” said Lawrence Yun, economist in head of NAR. “Home sales continue to grow at a rate higher than the rate observed before the pandemic. “
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The average price increased in all parts of the United States, reaching $ 507,000 in the West, $ 278,700 in the Midwest, $ 311,600 in the South and $ 412,800 in the Northeast. Each region saw double-digit year-over-year sales increases.
“At a general level, home prices are unlikely to decline due to tight inventory conditions, but I expect prices to appreciate at a slower pace by the end of the year. Yun said. “Ideally, the costs of a home would increase roughly with income growth, which is expected to occur in 2022 as more listings and new construction become available. “
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Distressed homes sold via short sale or foreclosure were below 1% in June, in line with May figures and down from 3% in June of last year, according to the NAR.
Meanwhile, escalating prices and insufficient inventory amid continued high demand continue to prompt more potential buyers to give up as the sellers market continues.
“Huge gains in wealth from both home equity and the stock market have pushed cash transactions, but first-time homebuyers who need mortgage financing are particularly faced with record home prices and low stocks, ”Yun said. “Although rates are favorably low, these barriers have been overwhelming for some potential buyers. “