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Existing Home Sales Data Shows A 'Strong Appetite' For Homebuying

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Existing Home Sales Data Shows A 'Strong Appetite' For Homebuying

Existing home sales in the U.S. rose in June and received a strong boost from first-time buyers.

According to the National Association of Realtors, existing home sales rose 1.1 percent in June to a seasonally adjusted annual rate of 5.57 million. Sales are now higher by 3 percent compared to June 2015 and at the highest annual pace since February 2007.

"Existing sales rose again last month as more traditional buyers and fewer investors were able to close on a home despite many competitive areas with unrelenting supply and demand imbalances," said Lawrence Yun, NAR chief economist. "Sustained job growth as well as this year's descent in mortgage rates is undoubtedly driving the appetite for home purchases."

The report added that the median existing-home price for all housing types in June rose 4.8 percent year-over-year to $247,700 - marking the 52nd consecutive month of year-over-year appreciation.

Related Link: Interest Rates Are At Historic Lows: Here's Why Millennials Should Buy A Home

Based on these statistics, Yun cautioned that it's "unclear" if the current sales pace has further room to accelerate in the current environment characterized by a "dearth of homes available for sale" and "lofty home prices that keep advancing."

Quick Loans: 'Still A Strong Appetite For Homebuying'

Bill Banfield, Quicken Loans' Vice President, noted that home sales increases are on a strong pace and the market hasn't seen this level of growth in nearly a decade.

He added there is "still a strong appetite for home-buying" and should also serve as a sign to homeowners looking to sell that there are still buyers looking to buy.

"This may be the right time to put that 'for sale' sign in their yard," he concluded.

The SPDR S&P Homebuilders (ETF) (NYSE: XHB) traded recently at $35.41, down about 0.5 percent on the day.

Posted-In: Bill Banfield Existing Home Sales home buyers Home Sales Lawrence YunNews Econ #s Economics Best of Benzinga

 

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