After May's modest (0.2% MoM) rise in existing home sales, expectations were for a return to declines in June, and they did tumbling 3.3% MoM (worse than the 2.3% MoM decline expected). That is the biggest MoM drop since Nov 2022...
The decoupling between existing and new home sales continues...
Sales fell in the South and West, were steady in the Midwest and rose in the Northeast
A lack of inventory in the resale market remains a key constraint.
The number of homes for sale held at 1.08 million, the lowest June inventory on record. With mortgage rates more than twice as high as they were at the end of 2021, many homeowners are choosing not to sell their homes.
“There are simply not enough homes for sale,” Lawrence Yun, NAR’s chief economist, said in a statement.
“The market can easily absorb a doubling of inventory.”
While the median selling price - at $410,200 - is down slightly from a year ago, it’s the second-highest in data back to 1999. Yun said scant supply is still leading to many homes receiving multiple offers, with one-third getting sold above the asking price.