Existing Homes Prices Up 88th Month: NAR Can't Figure Out Why Sales Are Down
The National Association of Realtors reports Existing-Home Sales Falter 1.7% in June.
Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2% from a year ago (5.39 million in June 2018).
“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” said Lawrence Yun, NAR’s chief economist. Yun says the nation is in the midst of a housing shortage and much more inventory is needed. “Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he said.
Yun said other factors could be contributing to the low number of sales. “Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure. It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”
The median existing-home price for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
Hello Mr. Yun. Did it occur to you for even a fleeting moment that people cannot afford homes, that prices have outstripped wages since 2012?
A chart of mine just might help.
Housing Bubble Reblown
Dear Lawrence Yun, please consider Housing Bubble Reblown: Last Chance for a Good Price Was 7 Years Ago
Instead of wondering why sales are so low, Yun ought to be thankful that home sales are as good as they are.
Yun ponders "lack of confidence" but buying at these levels actually suggests "overconfidence"
Mike "Mish" Shedlock