US. Home sales fell more-than-expected in June as persistent property shortages drove prices to a record high, suggesting that the real estate market has been barely recovering since the collapse of a soft spot last year.
Existing property sales fell 1.7% last month to a seasonally adjusted annual rate of 5.27 million units. The sales pace in May was raised from previously announced 5.34 million units to 5.36 million units.
Economists interviewed by Reuters predicted that sales of existing real estate in June would fall by 0.2% to 5.33 million units. Home sales, which accounts for approximately 90 percent of home sales in the US, declined 2.2 percent year-on-year. This was the 1
Housing weakness is due to lower mortgage rates and the lowest unemployment rate in almost 50 years.
The supply continues to decline, especially in the lower price segment of the housing market due to shortage of land and labor and expensive building materials. The government reported last week that permits for future housing construction fell to a two-year low in June.
The 30-year fixed mortgage rate has dropped from a high of 4.94% to an average of 3.81%. in November, according to mortgage lending agency Freddie Mac. Further declines are likely as the Federal Reserve is expected to lower interest rates next week for the first time in a decade.
Over the past month, sales of existing properties in the Northeast and Midwest have increased. They fell in the populous south and west.
1.93 million condominiums were on the market in June, down from 1.91 million in May and unchanged from the previous year. The median price for an existing home rose 4.3% from a year earlier to $ 285,700 in June, an all-time high.
At a June sales pace, it would take 4.4 months for the current inventory to be depleted, compared to 4.3 months in May. An offer of six to seven months is considered to be a balance between supply and demand.