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US existing home sales slide in June, prices hit record
WASHINGTON, July 24, 2019 (BSS/AFP) – US sales of existing homes weakened
unexpectedly last month as prices hit a record high making home ownership
increasingly costly, a survey showed Tuesday.
The surprising sluggishness last month came despite what otherwise should
be favorable conditions for buyers: low mortgage rates, low unemployment and
rising wages.
The National Association of Realtors said the tight supply of homes on the
market or weakening confidence among would-be homeowners could be behind the
decline.
Sales of all types of homes — single-family houses, condos, townhomes and
co-ops — fell 1.7 percent compared to May to an annual rate of 5.27 million,
undershooting economists’ expectations, as sales in the prior month were
revised higher than originally reported, NAR said in the monthly report.
The result put the sales pace 2.2 percent below June of last year.
Median home prices rose 4.3 percent year on year to a record-high
$285,700, according to the report.
“Either a strong pent-up demand will show in the upcoming months, or there
is a lack of confidence that is keeping buyers from this major expenditure,”
NAR Chief Economist Lawrence Yun said in a statement.
The weakness in sales was most pronounced for condos and coops, while
sales fell sharply in the Northeast and Midwest but rose slightly in other
regions.
Inventories eased somewhat, with a total of 1.93 million homes on the
market, which at the current sales pace represents a supply of 4.4 months, up
marginally from May when there were 1.91 million available.
RDQ Economics said the result was “disappointing,” given the drop in
mortgage rates and rising supplies.
While activity could pick up in the second half of 2019, “lower mortgage
rates do not appear to be spurring a big pickup in housing activity,” the
firm said in a research note.
BSS/AFP/HR/1015