After a miserable start to the year, existing housing sales are finally thawing out and gaining some traction. June sales were at 5.04 million homes on a seasonally-adjusted annualized rate (SAAR), up 2.6 percent from May 2014 according to the National Association of Realtors® (NAR). While down 2.3 percent from the 5.16 million sales level posted in June 2013, sales last month were the at the highest level since October of last year.
The median price of $223,300 was 4.3 percent greater than a year ago. It was the 28th consecutive month in which year-over-year price gains were reported.
The following graph shows the monthly SAAR of existing home sales in 2013 and thus far in 2014.
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Prices are following a similar pattern, as shown in the following graph.
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Other details in NAR’s June 2014 housing sales release included:
- 8 percent of all sales were foreclosures and just 3 percent short sales. A year ago foreclosures made up 8 percent and short sales 7 percent.
- The average discount on foreclosures was 20 percent when compared to non-distressed properties, while short sales averaged an 11 percent discount.
- First-time homebuyers made up just three in 10 sales (28 percent) compared to an older and then normal 40 percent.
- Investors completed 16 percent of the transactions.
- All-cash sales were done 32 percent of the time in June compared to an old then normal 12 to 14 percent.
- Four-out-of 10 homes sold in June were on the market less than one-month. The median time on the market was 44 days, with short sales taking 120 days, foreclosures 54 days and non-distressed property 42 days.
- With 2.3 million homes listed on the market, there is an estimated 5.5 month inventory of homes available for sale, close the six month level thought to be normal.
All price ranges except for the $100,000 and less saw an increase in sales this June compared to a year ago. The following table details transaction share and sales volume changes by price range.
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To read the entire NAR release click http://www.realtor.org/news-releases/2014/07/existing-home-sales-up-in-june-unsold-inventory-shows-continued-progress
Housing continues to recover from the stumble at the beginning of the year, but it may run out of time to make up for the icy winter conditions in the first quarter.
Sales and prices, however, and warming up.
I expect more of the same for July.
Ted
