Sales of existing homes dipped to their slowest pace in 14 years in June, according to CNBC.
What’s going on: Pre-owned homes sales “dropped 3.3% in June compared with May, running at a seasonally adjusted annualized rate of 4.16 million units, according to the National Association of Realtors.”
- The decline—which is due largely to a supply shortage—represents a decrease of nearly 19% since June of 2022.
- “There were just 1.08 million homes for sale at the end of June, 13.6% less than June of 2022.”
Why it’s important: The low inventory of existing homes is keeping prices high at a time when mortgage rates are also elevated.
- “The median price of an existing home sold in June was $410,200, the second highest price ever recorded by the Realtors.”
- The lower end of the market is being hit hardest.
What’s ahead: Prices are likely to stay elevated “as mortgage rates weigh heavily on affordability.”
Newly built homes: New home builds are reaping the benefits. DR Horton, the largest homebuilder in the U.S., reported in its earnings release today that sales orders have increased 37%.