Based on June’s existing-home sales and inventory levels, National Association of Realtors’ Chief Economist, Lawrence Yun, believes that “housing fundamentals are moving in the right direction.” Existing-home sales in June rose 2.6% on a seasonally adjusted basis over May while the pace of sales was at its highest for the first time since October 2013. Compared to the same time last year, June’s existing-home sales declined by 2.3%.
Rising by 2.2% from May, June housing inventory represented a 5.5-month supply with 2.30 million existing homes for sale. Housing inventory was also 6.5% greater in June compared to the same time last year.
Yun stated, “Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country. This bodes well for rising home sales in the upcoming months as consumers are provided with more choices. On the contrary, new home construction needs to rise by at least 50 percent for a complete return to a balanced market because supply shortages – particularly in the West – are still putting upward pressure on prices.” Read more at http://bit.ly/1mAvDI9.