- Low inventory drags June’s existing home sales numbers into negative territory, the lowest annual rate since February, down 1.1% despite May’s increase.
- Steady mortgage rates will continue to encourage demand even in an environment of high prices and little supply. As a result, homebuyers are snatching up inventory at rates equal to the pre-recession peak.
- While inventory fell 0.25% from May, demand for existing homes are stronger than ever. Inventory is moving at rates near equal to the pre-recession peak, despite historically low inventory and high home prices.
Existing home sales in June continued their volatile pattern since the beginning of 2017, decreasing 1.8% from the previous month to a seasonally adjusted annual rate of 5.52 million homes. These numbers are 3.3% higher than this time last year. Existing home sales struggle to return to normal, with a rate per 1,000 households lowering since last month to 84.6% of pre-recession levels.
The quickening pace of existing homes sales indicates a robust demand for homes. Steady mortgage rates will continue to encourage demand even in an environment of high prices and little supply. As a result, home buyers are snatching up inventory at rates equal to the pre-recession peak.
