Sales of existing homes increased 2% on a seasonally adjusted annual basis from the previous month in July 2021, marking the second consecutive month in which sales increased, according to the National Association of Realtors (NAR). Total sales of existing single-family homes, townhouses, condos and co-ops reached a rate of 5.99 million, up 1.5% from 5.90 million in July 2020.
All major geographies remained stable or increased month over month. Only one region saw its sales of existing homes decline year over year.
Single-family home sales increased 2.7% from June to a seasonally adjusted annual rate of 5.28 million in July, down 0.8% from July 2020. Condominium and co-op sales are increased from 730,000 units in June to 710,000 units in July. but sales were still up 22.4 percent from the previous year.
“We are seeing stocks start to rise, which will reduce the intensity of multiple offers,” Lawrence Yun, chief economist of NAR, said in a press release. “Much of the growth in home sales is still happening in high-end markets, while mid-to-lower tier areas aren’t seeing as much growth because there are still too few starter homes available. “
Meanwhile, the total inventory was up 7.3% from June to 1.32 million units, but down 12% from the previous year. That figure places current inventory levels at 2.6 months of supply. In June, there were 2.5 months of housing supply and in July 2020, 3.1 months.
The median price of existing homes also continued to increase year over year, reaching $ 359,900 in July 2021, up 17.8% from $ 305,600 in July 2020. The median price of Existing single-family homes increased 18.6% from the previous year to reach $ 367,000. Condos also posted significant year-over-year price gains, reaching a median price of $ 307,100 in July 2021, up 14.1% from the previous year.
However, Yun said prices will likely experience slower growth soon as inventory levels continue to rise.
“While we shouldn’t expect home prices to drop over the next few months, it is possible that they will level off as inventories continue to gradually improve,” Yun said. “In the meantime, some potential buyers whose prices are overpriced are increasing the demand for rental housing and thus increasing rental rates.”
Market days in July remained stable compared to June at 17 days. Almost 90 percent of homes sold in July had been on the market for less than a month.
The number of first-time buyers making up sales fell slightly, from 31% in June to 31% in July. That number was also down from 34% in July 2020.
Cash sales, at 23% of sales, accounted for almost a quarter of all transactions in July, which remained unchanged from June, but were up from 16% in July 2020.
Foreclosures and distressed sales accounted for less than 1% of sales in July, the same percentage seen in both June 2021 and July 2020.
Sales of existing homes in the Midwest increased by the highest margin from the previous month, increasing 3.8% to an annual rate of 1,380,000. Year over year, home sales in however, the region declined 1.4% and the median price was $ 275,300, up 13.1% from the previous year.
In the West, sales of existing homes rose 3.3% to an annual rate of 1,240,000, the same number as the previous year. The median price rose 12.5% from the previous year to $ 508,300.
Existing home sales increased 1.2% in the South, reaching an annual rate of 2,630,000, also up 1.2% from July 2020. The median price in the region increased by 14, 4% over the previous year to reach $ 305,200.
Existing home sales in the Northeast were flat at an annual rate of 740,000, up 12.1% from July 2020. The median price rose 23.6% year over year. other in the region at $ 411,200.
Danielle Hale, chief economist at realtor.com, noted in an emailed statement to Inman that the economic recovery must remain stable for sales to continue growing in the coming months.
“The continued economic recovery is critical to sustaining sales momentum, and anything that disrupts progress, such as increasing COVID cases, could sidetrack door-to-door sales,” Hale said. “We have already seen a decline in builder confidence and mixed construction data, with builders balancing buyer interest with supply challenges, rising costs and concerns about the future of the economy. and affordability of housing. Nonetheless, with listing price growth starting to recalibrate in response to changing supply and demand dynamics, we should see a sustained pace of home sales over the coming months, especially if mortgage rates stay low. “
Email Lillian Dickerson