By Vincent Salandro | Builder
Existing-home sales declined for the fifth consecutive month in June to a seasonally adjusted rate of 5.12 million, according to the National Association of Realtors (NAR). Existing-home sales, which includes sales of single-family homes, townhomes, condominiums, and co-ops, decreased 5.4% from May and decreased 14.2% on a year-over-year (YOY) basis in June.
“Falling housing affordability continues to take a toll on potential home buyers,” says NAR chief economist Lawrence Yun. “Both mortgage rates and home prices have risen too sharply in a short span of time.”
Total housing inventory at the end of June was 1.26 million units, an increase of 9.6% month over month and a 2.4% YOY increase compared with June 2021. Unsold inventory sits at a 3.0 month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021. The median existing-home price for all housing types in June was $416,000, a 13.4% YOY increase, marking the 124th consecutive month of YOY increases in prices.
Properties typically remained on the market for 14 days in June, down from 17 days in June 2021. The 14 days on the market are the fewest since NAR began tracking the statistic in May 2011. Nearly nine in 10 homes sold in June 2022 were on the market for less than a month, according to NAR.