The weakness in housing accelerates further in June. Existing home sales are down 21.1 percent since January.
This article was originally published by Mish Talk.
Existing Home Sales Synopsis
- Down Five Consecutive Months
- Down 5.4 percent in June
- Down 14.2 percent from a year ago
- Down 21.1 percent since January 2022
Existing Home Sales Last 25 Years
Existing home sales are at level seen in 1999.
The National Association of Realtors® reports Existing-Home Sales Slid 5.4% in June
- Existing-home sales declined for the fifth straight month to a seasonally adjusted annual rate of 5.12 million.
- Sales were down 5.4% from May and 14.2% from one year ago.
- The median existing-home sales price climbed 13.4% from one year ago to $416,000, a new record high.
- Total housing inventory registered at the end of June was 1,260,000 units, an increase of 9.6% from May and a 2.4% rise from the previous year (1.23 million).
- Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021.
- The median existing-home price for all housing types in June was $416,000, up 13.4% from June 2021 ($366,900), as prices increased in all regions.
- Properties typically remained on the market for 14 days in June, down from 16 days in May and 17 days in June 2021. The 14 days on market are the fewest since NAR began tracking it in May 2011. Eighty-eight percent of homes sold in June 2022 were on the market for less than a month.
- All-cash sales accounted for 25% of transactions in June, the same share as in May and up from 23% in June 2021.
- Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in June, unchanged from May and a slight increase from 14% in June 2021.
Housing Bust Just Starting
A look at individual points above, especially median price, time on market, and inventory that’s just starting to rise all suggest this is the early innings of a housing bust.
Single-Family Housing Starts and Permits Dive Eight Percent in June
Single-family has weakened from 1,220,000 starts in November 2021 to 982,000 in July 2022.
That’s a 19.5 percent decline.