According to a recent report released by the National Association of Realtors (NAR), existing-home sales continue to sizzle this summer. NAR’s data specifically reveals that during the month of July, existing-home sales steadily rose, continuing the trend of significant sales increases that has been going strong for two months straight.
Across the entire nation, within all four major regions, sales increased in the double-digits (month-over-month). In fact, the only region that experienced a decline of any sorts was that of the Northeast, which reported a year-over-year decline.
Further highlighted in the report was the exact percentage that total existing-home sales jumped in July from just one month previous, which was just under 25% (to a seasonally-adjusted annual rate of 5.86 million). This marked a record high, beating out the previous highest percentage monthly increase record, which was 20.7% during June of this year. These statistics for July reveal that sales as a whole rose year-over-year (up 8.7% from exactly one year ago).
NAR's chief economist, Lawrence Yun, commented on the current state of affairs in the housing industry, and what to expect moving forward: “The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days. With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”
NAR President Vince Malta also shared his insight on an expected recovery: “Homebuyers’ eagerness to secure housing has helped rejuvenate our nation’s economy despite incredibly difficult circumstances. Admittedly, we have a way to go toward full recovery, but I have faith in our communities, the real estate industry and in NAR’s 1.4 million members, and I know collectively we will continue to mount an impressive recovery.”
Further expert commentary on NAR’s report was offered by realtor.com’s Chief Economist, Danielle Hale: “Continued healing in the housing market is a positive for the overall economy, but elevated jobless claims raise concerns about how sustainable this housing demand is, especially in the face of rising prices.”
Hale added: “Asking prices were up 10 percent year-over-year for the week ending August 15, and July sales prices rose, but at a slower pace of 8.5 percent. For now, waves of homebuyers continue to flood the market and purchase mortgage applications continue to increase even as sellers took a step back, putting fewer new listings up for sale this week. The sheer volume of home buyers in the market right now means that sellers who decide to list have the upper hand in negotiations.”