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Existing Home Sales Roared Back in June, Ending 3-Month Drought
Wednesday, July 22, 2020
Existing home sales
ended a three-month string of losses arising out of the COVID-19 pandemic with
a flourish, soaring by 20.7 percent from May to June. Sales
rose from a seasonally adjusted annual rate of 3.91 million units in May to
4.72 million units. The National Association of Realtors® (NAR) said sales of single-family
homes, townhomes, condominiums and co-ops were still down year-over-year by 11.3
percent. Even though NAR said the increase was
at a record pace, it fell short of projections. Analysts polled by Econoday
had expected sales to rise to an annual number ranging from 4.35 to 5.10
million with a consensus of 4.8 million. Single-family home sales were up
19.9 percent from 3.57 million in May to 4.28 million but remain down 9.9
percent from one year ago. Existing condominium and co-op sales rose 29.4
percent to 440,000 units, an annual loss of 22.8 percent. "The sales recovery is strong, as
buyers were eager to purchase homes and properties that they had been eyeing
during the shutdown," said Lawrence Yun, NAR's chief economist. "This
revitalization looks to be sustainable for many months ahead as long as mortgage
rates remain low and job gains continue."
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