June Sales Strong

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June Strong for Sales and Selling Price

New data from NAR shows that existing-home sales in June hit their highest pace in over eight years. At the same time, the national median sales price hit an all-time high. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.

Total existing-home sales increased 3.2 percent and are at their highest pace since February 2007. NAR's Chief Economist Lawrence Yun says this year's spring buying season has been the strongest since the downturn, and added, "This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy." Yun also estimated that June sales could have been boosted by rising mortgage rates which often urges buyers to act sooner than later. The median price for all housing types in June was $236,400, which is 6.5 percent above year-ago levels and marks the 40th consecutive month of year-over-year gains. Data also showed that total housing inventory at the end of June increase by just 0.9 percent. The percent share of first-time buyers fell to 30 percent in June from 32 percent in May, but remained at or above 30 percent for the fourth consecutive month. Properties stayed on the market for an average of 34 days in June, down from 40 days in May. This also marks the shortest time since NAR began tracking in May 2011. All-cash sales were 22 percent of transactions in June, down from 24 percent in May and 32 percent a year ago. Distressed sales fell to 8 percent in June from 10 percent in May, and are below the 11 percent share a year ago.

STATE

MA Market Also Sees a Strong June

Summer got off to a sizzling start for Massachusetts real estate, as pending sales of single-family homes and condominiums were much higher last month than in the same month a year earlier. According to the Massachusetts Association of Realtors, 7,316 single-family homes came under agreement during June, up 36.8 percent from the 5,349 deals reached in the same month a year ago. Condominium sales were nearly as hot. Realtors reported 2,777 condos coming under agreement in the state last month, up 33.4 percent from the 2,082 deals reached in June 2014. There was little price movement, however. The median price for a single-family home that came under agreement last month was $375,000, up 2.8 percent from the year-ago median of $364,900, while the median price for a condominium that came under agreement last month was $330,000, down 0.6 percent. A pending sale occurs when a buyer and seller agree on a price for a property, but have yet to close on the deal. Real-estate pros say pending sales are a leading indicator of the market two to three months out. In Massachusetts, pending sales for single-family homes and condominiums have risen on a year-over-year basis in 27 of the past 28 months. "June was a very active month, even with the usual end-of-school activities and graduation celebrations," said MAR President Corinne Fitzgerald, broker/owner of Fitzgerald Real Estate in Greenfield, in a statement. "Sellers who price their house correctly are benefiting from all this activity and entering into agreements shortly after they are listed." Confidence in the market among Realtors increased markedly as a result. MAR's monthly Realtor Market Confidence Index registered a reading of 78.47 last month, up from 63.89 in June 2014. Measured on a 100-point scale, a score of 50 is the midpoint between a "strong" (100 points) and a "weak" (0 points) market condition.

MARKET TRENDS

3 Reasons Why It's a Great Time For Sellers

Rising home prices, demand from home buyers, and less competition is making 2015 a stellar year to sell for many U.S. home owners across the country, says Daren Blomquist, RealtyTrac's vice president. Blomquist points to these three factors behind why this year is shaping up more favorably for sellers:

1. Stronger demand coming from buyers: Sellers in many markets are seeing stronger demand from a larger pool of buyers, including first-time buyers, boomerang buyers (previous owners who lost their home to foreclosure), as well as traditional owner-occupant buyers. Particularly of note lately, the number of buyers using Federal Housing Administration - typically low down payment loans often used by first-time home buyers - is on the rise, accounting for 23 percent of all single-family home and condo sales with financing in the second half of 2015. That marks the highest share since the first quarter of 2013, according to RealtyTrac's Midyear 2015 U.S. Home Sales report. 2. Home prices are skyrocketing: Single-family home and condo sellers in the first half of this year sold for an average of 13 percent above their original purchase price. "So far in 2015, [sellers] are realizing the biggest gains in home price appreciation since 2007," Blomquist says. "In June, sellers sold for above estimated market value on average for the first time in nearly two years." Median sales prices of existing-homes pushed above the previous 2006 peak to a record high in June, the National Association of REALTORS® reported this week. The median existing-home price for all housing types was $236,400 in June - surpassing the peak median sales price set in July 2006 at $230,400. 3. Sellers have less competition: Inventories of for-sale homes remains tight, which has forced buyers to have to compete for the limited supply. Distressed sales -properties in the foreclosure process or bank-owned - accounted for 8 percent of all single-family and condo sales in June, the lowest monthly share since January 2011. In 2011, the share of distressed sales had reached a monthly peak of nearly 46 percent of all single-family and condo sales.

Visit www.agentrising.com for more real estate news.

Jul 28, 2015 04:01pm

By Myra Williams

5 min read

June Sales Strong

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