With a worldwide health crisis that drove a pause in the economy this year, the housing market was greatly impacted. Many have
been eagerly awaiting some bright signs of a recovery. Based on the latest Existing Home Sales Report from the National
Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.
According to NAR, home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June:
“Existing-home sales rebounded at a record pace in June, showing strong signs of a market
turnaround after three straight months of sales declines caused by the ongoing pandemic…Each
of the four major regions achieved month-over-month growth.”
This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief
Economist for NAR, the momentum has the potential to continue on, too:
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they
had been eyeing during the shutdown…This revitalization looks to be sustainable for many months
ahead as long as mortgage rates remain low and job gains continue.”
With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to
continue taking advantage of this historic opportunity to buy. This fierce competition among buyers is contributing to home price
increases as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:
“The median existing-home price for all housing types in June was $295,300, up 3.5% from June
2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight
months of year-over-year gains.”
The graph below shows home price increases by region, powered by low interest rates, pent-up demand, and a decline in
inventory on the market: Yun also indicates:
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition
and a significant shortage of supply.”
Bottom Line
Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward a recovery. If you’re
ready to buy a home this year, let’s connect to make sure you have the best possible guide with you each step of the way.
Liliana Reeves P.A, REALTOR|📲 305-609-3525 | Liliana.Reeves@GMail.com | www.LilianaReeves.com
“Selling Your Home Is My Business and Finding Your Next Home Is Too”