Photo: David Sawyer/Flickr
The market for existing homes in the US heated up in June with the National Association of Realtors (NAR) reporting the median sale price for an existing home hit an all-time high. According to figures released Wednesday, prices for all property types rose 6.5 percent, year-over-year, to $236,400. This surpasses the previous peak of $230,400 recorded in July 2006. June was also the 40th consecutive month to see year-over-year gains.
The biggest price increase was seen in the West, where the median sale price was $328,900 in June, up 9.9 percent over the same time last year. The rate of growth in the Midwest and The South matched: both measured a year-over-year increase of 7.2 percent with median sale prices of $190,000 and $205,000, respectively.
Activity was also brisk with monthly sales surging to the highest level seen since February 2007.
Sales of existing homes reached the seasonally adjusted annual rate of 5.49 million in June, up 3.2 percent from the month before.
“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,” said Lawrence Yun, NAR chief economist.
“June sales were also likely propelled by the spring’s initial phase of rising mortgage rates, which usually prods some prospective buyers to buy now rather than wait until later when borrowing costs could be higher.”
Sales of single-family homes shot up 9.8 percent, year-over-year. June sale of condos and co-ops rose at a rate of 8.3 percent.