Today, the National Association of Realtors® announced that total existing home sales in a month broke the 5 million mark in June for the first time since last October. But June 2014 sales were still 2.3 percent below the pace set in June 2013.
Lawrence Yun, NAR chief economist, said housing fundamentals are moving in the right direction. “Inventories are at their highest level in over a year and price gains have slowed to much more welcoming levels in many parts of the country. This bodes well for rising home sales [but not prices] in the upcoming months as consumers are provided with more choices.” NAR notes a need for more new construction to completely meet demand and has blamed the low volume of sales on low inventory, providing few choices to potential buyers.
Yun also noted that stagnant wage growth is holding back what should be a stronger pace of sales. “Hiring has been a bright spot in the economy this year, adding an average of 230,000 jobs each month,” he said. “However, the lack of wage increases is leaving a large pool of potential home buyers on the sidelines who otherwise would be taking advantage of low interest rates.
Get full details from the NAR Press Release.
Here’s the Flagstaff Monthly Home Sales Report.