Existing home sales jumped 21% in June, Realtors report

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The housing market showed continued signs of recovery in June, with sales rebounding and prices holding strong, the National Association of Realtors said Wednesday.

NAR reported 4.7 million sales of existing homes in June, down 11 percent from the 5.3 million sales in June 2019. Compared to the coronavirus-hampered market in May, sales jumped 21 percent.

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said 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.”

Meanwhile, prices are still rising. The median price of all homes sold by Realtors last month rose to $295,300, up 3.5 percent from a year ago.

The housing market has remained robust even as the broader economy has fallen into recession. That’s partly because of record-low mortgage rates, and partly because of an aggressive federal stimulus that has included a break from mortgage payments for up to a year.

Meanwhile, supply has fallen even more sharply than demand. There was only a four-month supply of homes for sale, compared to 4.3 months of supply a year ago. Economists consider anything less than six months of supply to be a seller’s market.

Realtors around the country are reporting bidding wars on entry-level homes.

Featured image by John Greim/LightRocket via Getty Images

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