Existing Home Sales Post Record-Breaking Jump in June
July 22, 2020
Sales of existing homes increased by nearly 21% in June as compared with May. This is the largest monthly increase since monthly data began to be tracked in 1968.
The jump is another piece of data that shows just how resilient the housing market has been during the pandemic and broader economic slowdown. More impressively, the monthly sales number is based on closings, so many of the sales were instigated in April and May, when much of the country was on strict lockdown. The numbers give analysts hope that future months’ sales, which reflect post-lockdown activity, will be even stronger.
That said, the market continues to face hurdles, and analysts posit that sales could have been even stronger if inventory wasn’t so constrained. The inventory of existing homes fell 18.2% annually, and at the current sales pace, represents just a four-month supply.
Affordability is also a limiting factor. The median price of an existing home climbed 3.5% in June to $295,000, an all-time high.