Tuesday, August 24, 2021 / by Ken Couture
More and more houses are entering the market and buyers are eager to buy them.
The National Association of REALTORS® reported on Monday that existing home sales (including single-family homes, townhouses, apartments, and cooperatives) in July increased by 2% compared to June. The seasonally adjusted annual rate is 5.99 million sets. Sales increased by 1.5% compared to last year.
NAR President Charlie Oppler said that as more and more homes enter the market, opportunities for potential buyers across the country continue to increase. Compared to June, the inventory of homes in July increased by 7.3%, reaching 1.32 million homes for sale.
“We see inventory beginning to tick up, which will lessen the intensity of multiple offers,” said Lawrence Yun, NAR’s chief economist. “Much of the home sales growth is still occurring in the upper-end markets, while the mid-to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available.”
But house prices continue to rise. The median price of existing homes for all home types in July was $ 359,900, an increase of nearly 18% year-on-year.
“Although we shouldn’t expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve,” Yun said. “In the meantime, some prospective buyers who are priced out are raising the demand for rental homes and thereby pushing up the rental rates.”
Here’s how existing-home sales fared across the country in July:
Northeast: Existing-home sales remained steady in July compared to June, but posted a 12.1% increase from July 2020.Median home price: $411,200, up 23.6% from a year ago.
Midwest: Sales increased 3.8% in July month over month, a 1.4% decline from a year ago. Median home price: $275,300, a 13.1% increase from a year ago.
South: Sales increased 1.2% in July compared to June, reaching a record high annual rate of 2.63 million. That marks a 1.2% increase from a year ago. Median home price: $305,200, a 14.4% from a year ago.
West: Sales increased 3.3% in July compared to June and equal to a year earlier. Median home price: $508,300, up 12.5% from July 2020.
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