Home Sales Hit a Record-Setting Rebound
With a worldwide health crisis that paused the economy this year, the housing market was greatly impacted. Many have been eagerly awaiting signs of recovery. Based on the latest Existing Home Sales Report from the National Association of Realtors (NAR), June hit a record-setting rebound to ignite that spark.
According to NAR, home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June:
“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth.”
This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue:
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown…This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to take advantage of this historic opportunity. This fierce competition among buyers is contributing to home price increases as more buyers find themselves in bidding wars.
The report also notes:
“The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.”
Yun also indicates:
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”
Bottom Line
Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward recovery. If you’re ready to buy a home this year, let’s connect to make sure you have the best possible guide with you each step of the way.
