The National
Association of Realtors (NAR) announced on Wednesday that the U.S. existing
home sales climbed 20.7 percent m-o-m to a seasonally adjusted rate of 4.72
million in June from 3.91 million in May, pointing to a market turnaround after three straight
months of sales declines caused by the ongoing pandemic. This was the largest
increase in existing home sales on record.
Economists had
forecast home resales jumping to a 4.78 million-unit pace last month.
In y-o-y terms,
however, existing-home sales fell 11.3 percent in June.
According to
the report, each of the four major regions recorded m-o-m growth, with the West
experiencing the greatest sales recovery. Single-family home sales stood at 4.28
million in June, up 19.9 percent from 3.57 million in May, and down 9.9 percent
from one year ago. The median existing single-family home price was $298,600 in
June, up 3.5 percent from June 2019. Meanwhile, existing condominium and co-op
sales were recorded at a seasonally adjusted annual rate of 440,000 units in
June, up 29.4 percent from May and down 22.8 percent from a year ago. The median existing condo price
was $262,700 in June, an increase of 1.4 percent from a year ago.
“The sales
recovery is strong, as buyers were eager to purchase homes and properties that
they had been eyeing during the shutdown,” noted Lawrence Yun, NAR’s chief
economist. “This revitalization looks to be sustainable for many months ahead
as long as mortgage rates remain low and job gains continue.”
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