Existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased in June to their highest pace in over eight years, according to the National Association of Realtors®. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.
The median existing-home price2 for all housing types in June was $236,400, which is 6.5 percent above June 2014. Forty-seven percent of homes sold in June were on the market for less than a month — the highest percentage since June 2013 (also 47 percent). Properties typically stayed on the market for 34 days.
Lawrence Yun, NAR chief economist, says “backed by June’s solid gain in closings, this year’s spring buying season has been the strongest since the downturn. “Buyers have come back in force, leading to the strongest past two months in sales since early 2007,” he said. “This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy.”
“Limited inventory amidst strong demand continues to push home prices higher, leading to declining affordability for prospective buyers,” said Yun.
Existing-home sales in the South increased 2.3 percent to an annual rate of 2.20 million in June, and are 7.3 percent above June 2014. The median price in the South was $205,000, up 7.2 percent from a year ago.
You can read the full report, Existing-Home Sales Rise in June as Home Prices Surpass July 2006, on the NAR website.
Amy Garland is a member of the National Association of Realtors. For help with your Knoxville real estate needs contact her at (865) 257-0100 or by e-mail.