Sale of existing homes rose 3.6% from May to June. This marks the third consecutive monthly gain and is an indication that a housing recovery may have begun across much of the country. “The housing market appears to be healing,” said Lawrence Yun, Chief Economist at the National Association of Realtor (NAR).The NAR said that existing home sales rose to a seasonally-adjusted rate of 4.89 million homes in June, up from 4.27 million homes in May. Inventories of homes fell to 9.4 month from 9.8 months. According to Yun, inventories must be at or below 7 months to achieve price stability.
This is the highest level of sales since October 2008 and beat economist expectations. According to Thomson Reuters, sales were expected to only rise to 4.84 million homes.
Median home sale price also rose in June. Median prices were $181,800 compared to $174,700 in May. However, home prices were still down significantly from the same period last year – losing 15.4%.
These are very positive signs for the housing market and overall economy!
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