Existing home sales rose 20.7% in May to an annual rate of 4.72 million in June, according to the National Association of Realtors (NAR).
While a monthly rise, this represents an 11.3% annual decline from 5.32 million in June 2019.
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said Lawrence Yun, Chief Economist, NAR. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
The average existing-home prices in June rose 3.5% to $295,200, compared to last June’s $285,400, and marks 100 straight months of annual price gains.
Holden Lewis, Home and Mortgage Expert, NerdWallet, said June’s rebound in home sales demonstrates buyers will come once homes are listed.
“There was just a four-month supply of homes at the end of June, which signifies a strong seller's market,” Lewis said. “The median home price was up 3.5% compared to 12 months earlier. In the early days of the pandemic, year-over-year price increases seemed unlikely because of fears that buyers would delay homebuying. But there's pent-up demand from buyers who feel that they've waited long enough, and they are making offers."
Housing inventory at the end of June was 1.57 million units—up 1.3% from May but down 18.2% from June 2019’s 1.92 million. There is a four-monthly supply of unsold inventory, which is both a monthly drop from Mat’s 4.8 months and June 2019’s 4.3 months.
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” Yun said.
Properties remained on the market for 24 days in June, which is down slightly from May’s 26 days and down from 27 days in June 2019. Additionally, 62% of homes sold in June 2020 were on the market for less than a month.
First-time buyers were responsible for 35% of sales in June, which is up from 34% in May 2020 and equal to June 2019’s 35%.
NAR’s 2019 Profile of Home Buyers and Sellers revealed that the annual share of first-time buyers was 33%.
“It’s inspiring to see Realtors® absorb the shock and unprecedented challenges of the virus-induced shutdowns and bounce back in this manner,” said NAR President Vince Malta, Broker at Malta & Co., Inc., in San Francisco. “NAR and our 1.4 million members will continue to tirelessly work to facilitate our nation’s economic recovery as we all adjust to this new normal.”