The median home price increased 5.3% in June to $223,300, up 4.3% from the same month last year. As we move into the peak months for the housing markets, we are observing home price growing at a similar rate to last year on a monthly basis. However, the year-over-year price increase in June was less than half of that seen last year. This slower rate of annual appreciation is more consistent with sustainable growth.
The seasonally adjusted annual rate of home sales rose to 5.04 million homes in June, a month-to-month increase of 2.6% and the fastest pace of home sales since last October. Sales were down only 2.3% from last year, and given the drop of distressed sales to 11% from 15%, it is likely that conventional sales of existing homes were actually up from last year in June.
The number of homes available for sale increased only 2.2% for the second month in a row, growing to 2.3 million homes. That translates to 5.5 months of supply, keeping the market slightly in favor of sellers. However, inventory is up 6.5% from last year, so buyers should have more options available.
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