Housing Market No Longer Weakest Link

According to today’s report from the National Association of Realtors:

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June.

Highlights of the report include:

1. Following a $8,100 increase in May, the median home price increased in June by another $7,100. Median home prices have increased in 4 out of the last five months, following a string of 7 consecutive monthly price declines starting last July.

2. There have been three consecutive monthly sales increases of 110,000 (April), 60,000 (May) and 170,000 (June) for the first time in more than a year.

3. Total housing inventory in June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May and down from last June’s inventory of 11 months. The 9.4-month supply is the lowest level in at least a year.

WSJ Article: “Economists React.”

Bottom Line: When you simultaneously have increasing unit sales, rising median home prices, and declining inventory levels, you’ve got all of the ingredients necessary for a real estate market rebound.

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

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