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52 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Despite Lack of Inventory, Existing Home Sales Up in June Improvements in housing supply has led to a rise in listings, resulting in an uptick in sales. S napping four consecutive months of declines, exist- ing-home sales rose 1.4% in June, according to findings from the National Association of Realtors (NAR). Total existing-home sales—de- fined as completed transactions that include single-family homes, townhomes, condominiums, and co-ops—grew 1.4% from May to a seasonally-adjusted annual rate of 5.86 million in June. Sales climbed year over year, up 22.9% from a year ago (4.77 million in June 2020). "Supply has modestly improved in recent months due to more housing starts, and existing home- owners listing their homes, all of which has resulted in an uptick in sales," said Lawrence Yun, NAR's Chief Economist. "Home sales continue to run at a pace above the rate seen before the pandemic." Housing supply at the end of June measured 1.25 million units, up 3.3% from May 2021's inventory and down 18.8% from one year ago (1.54 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May's 2.5-month supply, but down from 3.9 months in June 2020. The median existing-home price for all housing types in June was $363,300, up a significant 23.4% from June 2020 ($294,400), as every region recorded price jumps, marking 112 straight months of year-over-year gains. "At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year," Yun said. "Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022, as more listings and new construc- tion become available." The trend of a quick sale continued, as properties typically remained on the market for just 17 days in June, unchanged from May, and down from 24 days in June 2020. A whopping 89% of homes sold in June 2021 were on the market for less than a month. "Huge wealth gains from both housing equity and the stock market have nudged up all-cash transactions, but first-time buyers who need mortgage financing are being uniquely challenged with record-high home prices and low inventory," Yun said. "Although rates are favorably low, these hurdles have been overwhelming to some potential buyers." Regionally, existing-home sales in the Northeast increased 2.8% in June, recording an annual rate of 740,000, a 45.1% rise from a year ago. The median price in the Northeast was $412,800, up 23.6% from June 2020. Existing- home sales in the Midwest rose 3.1% to an annual rate of 1,330,000 in June, an 18.8% increase from a year ago. The median price in the Midwest was $278,700, an 18.5% increase from June 2020. In the South, existing-home sales were unchanged from May, posting an annual rate of 2,590,000 in June, up 19.4% from the same time one year ago. The median price in the South was $311,600, a 21.4% climb from one year ago. Existing-home sales in the West rose 1.7%, regis- tering an annual rate of 1,200,000 in June, a 23.7% jump from a year ago. The median price in the West was $507,000, up 17.6% from June 2020. "Plenty of buyers remain in the market, hoping to find a home that is a good fit for their needs and budget," Realtor.com Chief Economist Danielle Hale noted. "Despite public opinion that it's not a great time to buy, many home shoppers are looking to take advantage of still-low mortgage rates and lock in their monthly housing payment, the largest budget item for many households. They are likely also looking to avoid having to contend with sky- rocketing rents. But with home sales prices rising and the typical asking price up by double-digits for 49 straight weeks, this is no easy task. One ray of hope for homebuyers is that the public broadly agrees that it's a good time to sell, and this is finally translating into a consistent uptick in the number of new home sell- ers hitting the market.