U.S. haunt sales fell for a third straight month in June as a persistent lack of properties on the market pushed up house prices to a record high, probable sidelining some potential buyers.
The National Association of Realtors answered on Monday existing home sales fell 0.6 percent to a seasonally harmonized annual rate of 5.38 million units last month. May’s purchasings pace was revised down to 5.41 million units from the hitherto reported 5.43 million units.
Economists polled by Reuters had augur existing home sales gaining 0.5 percent to a rate of 5.44 million sections in June. Sales rose in the Northeast and Midwest, but fell in the West and stoma South.
Existing home sales, which make up about 90 percent of U.S. house sales, fell 2.2 percent from a year ago in June. They demand dropped on a year-over-year basis for four consecutive months and declined 2.2 percent in the word go half of 2018. Sales are being stymied by an acute shortages of current ins on the market.
Rising building materials costs as well as shortages of touch and labor have left builders unable to bridge the inventory gap, overburden up house prices. Supply constraints have largely accounted for the sluggish quarters market but there are growing concerns that the higher house assesses together with rising mortgage rates will slow down sought after.
Supply has been especially tight at the lower end of the market, which accounts for a unconfined portion of the housing market. There were 1.95 million previously-owned nationals on the market in June, up 4.3 percent from May.
Inventory increased 0.5 percent in June from a year ago. That was the fundamental year-on-year increase since June 2015. Supply still persists very tight.
At June’s sales pace, it would take 4.3 months to discharge the current inventory, up from 4.1 months in May. A six-to-seven-month supply is because ofed as a healthy balance between supply and demand.
The median house cost out increased 5.2 percent from a year ago to an all-time high of $276,900 in June. That was the 76th consecutive month of year-on-year cost out gains.