Existing-Home Sales Pick Up in July
(Image courtesy of NAR)
The National Association of Realtors, Chicago, found existing-home sales grew 1.3% in July to a seasonally adjusted annual rate of 3.95 million. That follows a four-month sales decline.
However, sales were still down 2.5% year-over-year.
“Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
“This upturn was anticipated given a modest increase in pending home sales in June, and was likely owed to a slip in financing costs the prior month,” noted Wells Fargo Economists Jackie Benson and Ali Hajibeigi.
“The 30-year fixed mortgage rate dropped from 7.1% on average in May to 6.9% in June. Although still elevated, the descent below 7% likely sparked renewed interest among prospective buyers,” they wrote.
The median existing-home sales price grew 4.2% year-over-year to $422,600, the 13th straight month of year-over-year price gains.
The inventory of unsold homes hit 1.33 million, or the equivalent of 4 months’ supply, down from 4.1 months in June and up from 3.3 months year-over-year. The inventory marked a 0.8% increase from June and a 19.8% increase year-over-year.
Single-family home sales grew 1.4% to a seasonally adjusted annual rate of 3.57 million, down 1.4% year-over-year. The median price was $428,500, up 4.2% year-over-year.
Existing-condo and -co-op sales were flat from June, at a seasonally adjusted annual rate of 380,000 units, and down 11.6% from last year. The median condo price was $367,500, up 2.7% year-over-year.
Properties were on the market for 24 days in July, up from 22 in June and 20 in July.
First-time buyers were responsible for 29% of sales, flat from June but down from 30% last year.
All-cash sales were 27%, down from 28% in June but up from 26% in July 2023.
And, distressed sales were about 1% of July transactions, flat from both last month and July 2023.
