Despite a better than expected 1.1% MoM rise in June (thanks to notable downward revisions), existing home sales growth is the slowest since February. Of course, NAR's Larry Yun gloated of "sustained job growth" driving an "impressive streak of sales gains," although he cautions " it's unclear if this current sales pace can further accelerate." Median home prices soared to new record highs driven by soaring demand for condo/co-ops (+3.2% vs just 0.8% for single-family homes).
At 5.57m SAAR, this is the highest existing home sales since Feb 2007... but growth is fading once again...
The median existing-home price for all housing types in June was $247,700, up 4.8 percent from June 2015 ($236,300). June's price increase marks the 52nd consecutive month of year-over-year gains and surpasses May's peak median sales price of $238,900.
Total housing inventory at the end of June dipped 0.9 percent to 2.12 million existing homes available for sale, and is now 5.8 percent lower than a year ago (2.25 million). Unsold inventory is at a 4.6-month supply at the current sales pace, which is down from 4.7 months in May.
The share of first-time buyers was 33 percent in June, which is up from 30 percent in May and a year ago and is the highest since July 2012 (34 percent). Through the first six months of the year, first-time buyers have represented an average of 31 percent of buyers; they were 30 percent in all of 2015.
All-cash sales were 22 percent of transactions in June, unchanged from both May and a year ago. Individual investors, who account for many cash sales, purchased 11 percent of homes in June (lowest since July 2009 at 9 percent), down from 13 percent in May and 12 percent a year ago. Sixty-four percent of investors paid cash in June.
And the breakdown shows Rental Nation demands surging...
Single-family home sales increased 0.8 percent to a seasonally adjusted annual rate of 4.92 million in June from 4.88 million in May, and are now 3.1 percent higher than the 4.77 million pace a year ago. The median existing single-family home price was $249,800 in June, up 5.0 percent from June 2015.
Existing condominium and co-op sales grew 3.2 percent to a seasonally adjusted annual rate of 650,000 units in June from 630,000 in May, and are now 1.6 percent above June 2015 (640,000 units). The median existing condo price was $231,600 in June, which is 3.2 percent above a year ago.
Lawrence Yun, NAR chief economist, says the impressive four month streak of sales gains through June caps off a solid first half of 2016 for the housing market.
"Existing sales rose again last month as more traditional buyers and fewer investors were able to close on a home despite many competitive areas with unrelenting supply and demand imbalances," he said. "Sustained job growth as well as this year's descent in mortgage rates is undoubtedly driving the appetite for home purchases."
However, Yun has some reservations...
"Looking ahead, it's unclear if this current sales pace can further accelerate as record high stock prices, near-record low mortgage rates and solid job gains face off against a dearth of homes available for sale and lofty home prices that keep advancing."