Posted on 07/22/21
| News Source: The Hill
The median sale price of an existing home rose to a record high of $363,300 in June as purchases broke a four-month streak of declines, according to data released Thursday by the National Association of Realtors (NAR).
As home sales rose 1.4 percent last month, the median sale price of an existing home soared 23.4 percent in the year since June 2020 — just 0.2 percentage points below May’s record-setting annual increase. The median sale price of an existing home one year ago was $294,000.
A small increase in the housing supply helped sales increase for the first time since February, said NAR chief economist Lawrence Yun, but did little to cool the staggering rise in prices that suppressed sales earlier this year.
"Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales," Yun said.
"At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” he continued.
Home sales and prices skyrocketed through most of 2020 thanks to a combination of ultralow interest rates, federal stimulus and a rush of buyers eager to expand or add to their living spaces while locked down.