Current:Home > Contact-usUS home sales fell in June to slowest pace since December amid rising mortgage rates, home prices-LoTradeCoin
US home sales fell in June to slowest pace since December amid rising mortgage rates, home prices
View Date:2024-12-24 07:12:45
LOS ANGELES (AP) — The nation’s housing slump deepened in June as sales of previously occupied homes slowed to their slowest pace since December, hampered by elevated mortgage rates and record-high prices.
Sales of previously occupied U.S. homes fell 5.4% last month from May to a seasonally adjusted annual rate of 3.89 million, the fourth consecutive month of declines, the National Association of Realtors said Tuesday.
Existing home sales were also down 5.4% compared with June of last year. The latest sales came in below the 3.99 million annual pace economists were expecting, according to FactSet.
Despite the pullback in sales, home prices climbed compared with a year earlier for the 12th month in a row. The national median sales price rose 4.1% from a year earlier to $426,900, an all-time high with records going back to 1999.
Home prices rose even as sales slowed and the supply of properties on the market climbed to its highest level since May 2020.
All told, there were about 1.32 million unsold homes at the end of last month, an increase of 3.1% from May and up 23% from June last year, NAR said.
That translates to a 4.1-month supply at the current sales pace. In a more balanced market between buyers and sellers there is a 4- to 5-month supply.
While still below pre-pandemic levels, the recent increase in homes for sale suggests that, despite record-high home prices, the housing market may be tipping in favor of homebuyers.
For now, sellers are still benefiting from a tight housing market inventory.
Homebuyers snapped up homes last month typically within just 22 days after the properties hit the market. And 29% of those properties sold for more than their original list price, which typically means sellers received offers from multiple home shoppers.
“Right now we’re seeing increased inventory, but we’re not seeing increased sales yet,” said Lawrence Yun, the NAR’s chief economist.
The U.S. housing market has been mired in a slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. Existing home sales sank to a nearly 30-year low last year as the average rate on a 30-year mortgage surged to a 23-year high of 7.79%, according to mortgage buyer Freddie Mac.
The average rate has mostly hovered around 7% this year — more than double what it was just three years ago —- as stronger-than-expected reports on the economy and inflation have forced the Federal Reserve to keep its short-term rate at the highest level in more than 20 years.
veryGood! (35334)
Related
- South Carolina does not set a date for the next execution after requests for a holiday pause
- Reports: Dodgers land free-agent outfielder Teoscar Hernandez on one-year deal
- Veteran actress Jodie Foster: I have managed to survive, and survive intact, and that was no small feat
- Headless, drained of blood and missing thumbs, cold case victim ID'd after nearly 13 years
- Parts of Southern California under quarantine over oriental fruit fly infestation
- Truth, forgiveness: 'Swept Away' is a theatrical vessel for Avett Bros' music
- Italian opposition demands investigation after hundreds give fascist salute at Rome rally
- Rays shortstop Wander Franco released from Dominican jail amid ongoing investigation
- NFL Week 11 picks straight up and against spread: Will Bills hand Chiefs first loss of season?
- As Bosnian Serbs mark controversial national day, US warns celebration amounts to ‘criminal offense’
Ranking
- Indiana man is found guilty of murder in the 2017 killings of 2 teenage girls
- Argentines ask folk cowboy saint Gauchito Gil to help cope with galloping inflation
- The Only 3 Cleaning Products You’ll Ever Need, Plus Some Handy Accessories
- Ohio teacher undergoes brain surgery after 15-year-old student attacks her
- Waymo’s robotaxis now open to anyone who wants a driverless ride in Los Angeles
- Convicted killer pleads not guilty to jailhouse attack on killer of California student Kristin Smart
- Chicago woman pleads guilty, to testify against own mother accused of cutting baby from teen’s womb
- Gaza cease-fire protests block New York City bridges, and over 300 are arrested
Recommendation
-
Women suing over Idaho’s abortion ban describe dangerous pregnancies, becoming ‘medical refugees’
-
Haitian judge issues arrest warrants accusing former presidents and prime ministers of corruption
-
Julianne Moore and Natalie Portman Respond to Vili Fualaau's May December Criticism
-
Prince's 'Purple Rain' is becoming a stage musical
-
RHOP's Candiace Dillard Bassett Gives Birth, Shares First Photos of Baby Boy
-
NYC Mayor Eric Adams says story of firing a gun at school, recounted in his book, never happened
-
Commanders fire coach Ron Rivera as new ownership begins making changes
-
Watch Brie Larson's squad embrace the strange in exclusive 'The Marvels' deleted scene