Existing Home Sales Surge Most On Record But Still Down From Last Year
The National Association of Realtors reports Existing-Home Sales Climb Record 20.7% 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.
- 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.
- Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.
- Northeast: Sales rose 4.3%, at an annual rate of 490,000, a 27.9% decrease from a year ago. The median price was $332,900, up 3.6% from June 2019.
- Midwest: Sales rose 11.1% at an annual rate of 1,100,000, down 13.4% from a year ago. The median price was $236,900, a 3.2% increase from June 2019.
- West: Sales rose 31.9% at an annual rate of 950,000, a 13.6% decline from a year ago. The median price was $432,600, up 5.4% from June 2019.
- South: Sales rose 26.0% at an annual rate of 2.18 million, down 4.0% from a year ago. The median price in the South was $258,500, a 4.4% increase from June 2019.
Impact of Fed's Actions on Financial Assets
Once again we see the impact of the Fed's actions in financial assets while most of the real economy languishes.
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” said Lawrence Yun, NAR chief economist.
Unprecedented Recession Synchronization
Yesterday, I commented "Inflation is easy to find. Look no further than the stock and bond markets. ... The Fed can print money and Congress can hand it out, but neither can dictate where the money goes."
But inflation is not where the Fed wants it. Add housing to the list.
Home prices are not even in the CPI. They should be.
For related excellent comments from Lacy Hunt, one of the world's biggest bond fund managers, please see Unprecedented Recession Synchronization and What it Means.