Existing home sales improved last month, with the Midwest seeing the biggest month-over-month rise. But a key economist questions the ongoing viability of gains.
Last month, there were 583,000 existing home sales. The total reflects completed transactions on single-family homes, townhomes, condominiums and co-ops.
The sale of pre-owned U.S. residential properties, which exceeded any month during this year or last year, was up from a downwardly revised 525,000 in May 2016.
It was the fifth consecutive month-over-month gain.
Sales also climbed from 572,000 as of June 2015.
On a seasonally adjusted basis, the data — which was released Thursday by the National Association of Realtors — indicate that June 2016’s annual rate of existing home sales was 5.57 million.
The annual rate rose from a downwardly revised 5.51 million a month earlier and a downwardly revised 5.41 million a year earlier.
A month-over-month improvement has been reported for four months in a row.
“Looking ahead, it’s unclear if this current sales pace can further accelerate as record high stock prices, near-record low mortgage rates and solid job gains face off against a dearth of homes available for sale and lofty home prices that keep advancing,” NAR Chief Economist Lawrence Yun stated in the report.
In the Midwest, the annual rate rose 4 percent to 1.35 million. A 2 percent increase in the West left the rate there at 1.20 million. At 2.26 million, the annual rate in the South was the same as in the previous month. The Northeast had a 1 percent decline to a rate of 0.76 million.
The rate of existing single-family home sales was 4.92 million.
Last month’s activity left a U.S. inventory of 2.12 million homes for sale. The inventory tightened from 2.14 million in May and 2.25 million in June of last year.
Based on the current rate of sales, it would take 4.6 months to clear out the current inventory. The supply lessened from 4.7 months a month prior and 5.0 months a year prior.
It took 34 days to sell a property, two days longer than in May.
The median U.S. home price was $247,700 last month, while the average price was $292,100.
First-time buyer
share was a third last month, rising from 30 percent a month earlier and a year earlier. It was the highest first-time buyer share since July 2012’s 34 percent.
All-cash share was 22 percent during the most-recent month,
while distressed share was 6 percent.
