WASHINGTON, D.C. (Realtor.org) – “Just when you think sales activity is ready to settle into a more sustainable pace, the housing market continues to surprise,” says David Lereah chief economist for the National Association of Realtors (NAR). Existing-home sales surpassed market expectations and reached another record in June. Home sales were expected to slow from their recent fast pace.
Low Interest rates (30-year fixed-rate mortgages averaged 5.58 percent in June), favorable market conditions, job growth and an improved economy are boosting home sales, Lereah says.
Total existing-home sales — including single-family, townhomes, condominiums and co-ops —rose 2.7 percent in June to a seasonally adjusted annual rate of 7.33 million from an upwardly revised pace of 7.14 million in May. Sales were 4.4 percent from last June. The previous record was 7.18 million in April of this year.
The national median existing-home price for all housing types was $219,000 in June, up 14.7 percent from June 2004 when the median price was $191,000; this is the strongest increase since November 1980 when annual appreciation was 15.6 percent.
For more on this story see NAR’s press release.