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US existing median-house prices hit new highs in June

Median home prices in the United States rose to a high of $ 363,300 in June as strong demand boosted home sales.

According to the National Association of Real Estate Agents, pre-owned home sales in June increased 1.4% month-on-month to a seasonally adjusted annual rate of 5.86 million. June sales increased 22.9% year-on-year.

According to the NAR, the median pre-owned home price in June rose 23.4% year-on-year to a record high and continues to rise steadily despite limited inventories.

Economists surveyed by The Wall Street Journal predicted that sales of pre-owned homes, which make up the majority of the housing market, would increase by 2.2% a month.

The housing market boom has eased slightly as higher prices are encouraging more homeowners to sell their homes. Lawrence Yun, chief economist at NAR, said the homes sold in June received an average of four offers from five last month.

However, the number of homes for sale is much lower than usual, and demand is strong due to very low mortgage rates, and home prices are expected to continue to rise.

“Home sales continue at a faster pace than we saw before the pandemic,” Yun said.

Many homes sell above list prices and receive multiple offers. According to the NAR, typical homes sold in June have been on the market for 17 days, maintaining record lows.

John Niehaus and Dana Laboy raised their home budget after losing multiple offers.

Dana Laboy and John Kneehaus in Columbus, Ohio began buying homes for less than $ 400,000 in February, but raised their budgets after losing multiple offers, Laboy said.

“It was very depressing when we lost to the left and right homes every weekend for eight weeks in a row,” Laboy said. “In some cases, I thought I could offer up to $ 40,000 or more and still not get it.”

The couple’s rent ended in March, and they moved with Knee House’s parents while continuing to search for a house. They bought a three-bedroom home for $ 447,200 in June.

The number of units sold at the end of June was 1.25 million, an increase of 3.3% from May and a decrease of 18.8% from June 2020. At the current sales pace, there was 2.6 months of housing supply as of the end of June.

Market watchers expect home enthusiasts to continue to cool in the coming months as more homes sell and higher prices drive some buyers out of the market.

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“I don’t think you see such a kind [price] Cheryl Palmer, CEO of Homebuilder Taylor Morrison Home Corporation, said:

First-time buyers and those who can only buy a small down payment have the hardest time competing. According to a NAR survey, more than half of existing homebuyers who bought real estate on mortgages in June fell by at least 20%. Buyers also highlight their offers in this highly competitive market by agreeing to buy a home without any contractual terms that would normally protect the buyer, such as inspection requirements.

Alex Wolff and Maggie Jasper bought a home on the outskirts of Denver in June after months of hunting.


Photo:

Tom wolf

Alex Wolff and Maggie Jasper bought a double-decker home on the outskirts of Denver in June after months of hunting. Wolf and Jasper did not abandon their home inspection requirements at their offer, making competition difficult.

“I’m not going to take that much risk,” Wolff said. “We were really lucky because we worked so much on us.”

Second-hand home sales were up 3.1% in the Midwest and 2.8% in the northeast, the highest month-on-month increase.

Sales were particularly strong in the high-end market. According to the NAR, home sales in June, priced above $ 1 million, more than doubled from the previous year.

Building activity is increasing due to strong demand, but homebuilders are limited by labor, land supplies and material costs. The National Association of Home Builders said this week that confidence in US homebuilders declined in July.

According to the Commerce Department, housing starts, an indicator of US housing construction, rose 6.3% from May to June. Housing permits, which could signal future homebuilding, fell by 5.1%.

News Corporation,

The owner of The Wall Street Journal also operates Realtor.com under license from the National Association of Real Estate Agents.

The US mortgage market involves several key players who play an important role in the process. Here’s what investors should understand and the risks they take when investing in the industry: The WSJ’s Telis Demos explains.Photo: Getty Images / Martin Barrow

Write to Nicole Friedman nicole.friedman@wsj.com

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US existing median-house prices hit new highs in June

Source link US existing median-house prices hit new highs in June

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