June 2015 home sales hit an eight-year high at a seasonally-adjusted annualized rate of 5.49 million sales according to the National Association of Realtors (NAR). Sales were up 9.6 percent from a year ago and up 3.2 percent sequentially from May. Median price hit an all-time high at $236,400. Median home prices (on a 12-moving average) increased 6.05 percent in the past year.
The following graph shows the SAAR of monthly home sales since January 2009 plus median prices.
A comparison of sales closed each month in 2014 and 2015 (not seasonally-adjusted) are shown in the following graph. Next are median prices in the same format.
Prices will continue their increasing trajectory based on the number of months inventory. Normal inventory is six months, with five or less months considered a seller’s market and seven or more months a buyer’s market. Current inventory is an estimated 4.8 months on a seasonally-adjusted annualized basis. This is calculated by dividing the number sold in the prior 12 months by the number of current listings, then multiplying by 12.
Other items included in the NAR release:
- Just 30 percent of sales went to first-time homebuyers in June, with 40 percent considered normal
- Almost one-half (47 percent) of June sales were on the market less than 30 days
- The typical time on the market was 34 days in June versus 40 days the prior month. Since NAR commenced tracking this metric, this was shortest time ever measured
- Foreclosure sales were on the market a median 39 days, short sales 129 days, and non-distressed properties 33 days
- 6 percent of June sales were foreclosures compared to 8 percent a year ago and sold for an average 15 percent discount when compared to non-distressed properties
- 2 percent of June sales were short transactions versus 3 percent a year ago and sold at an average 18 percent discount versus non-distressed transactions
- All-cash transactions dropped to 22 percent of closings versus 32 percent a year ago
- Investors made up 12 percent of all buyers in June, down from 16 percent a year ago
- Investors paid all-cash 66 percent of the time
- Sales of $1 million dollar and up homes increased 20.7 percent from a year ago
To read the entire NAR press release and access underlying data click http://www.realtor.org/news-releases/2015/07/existing-home-sales-rise-in-june-as-home-prices-surpass-july-2006-peak
With almost three million net-new jobs created in the prior 12 months, and coupled with rising rents, demand for housing is strong and the numbers are reflecting that.
Ted