New home sales outpaced, existing home sales activity in May. And, the same was true for June. Although, June existing homes sales was up from May. It did rebound significantly, by some reports, up over 20% MoM. At the same time, the rebound hit below expectations. As result, June’s uptick was below the mark for MoM and down by about 11% YoY. That said, overall June 2020 domestic homes sales unveiled a positive report, for both existing and new home sales.
June 2020 Domestic Home Sales – Existing, Single Family Update
Though June single family, resale home sales out shined May’s activity, it was not the bump pundits expected. After all, the even lower interest rates were seen as a game changer. As a result, sales activity reflected somewhat the opposite. On the other hand, it would be incorrect to conclude the interest rates did not impact sales activity positively. In fact, they did.
Activity in June 2020 domestic home sales, for existing, single family real estate made a splash in pricing. And, prices rose some in every region. In fact nationally, home prices have slowly, steadily risen for over 8 years. Although, what was the median price in June? It settled around $295,300.
The big question is will this overall uptick in sales keep up. And, the answer is yes, in all likelihood. Since buyers are expected to keep their eyes on the prized home, they’ll also take advantage of the incredibly low interest rates. Of course, that buyer enthusiasm is based on sustained low interest rates and job gains. As a result, if both these factors don’t hold steady, a robust home sales recovery may not be in the forecast for at least some regions of the country.
There’s no doubt rock bottom mortgage interest rates will power through to solid levels of resale home sales in the coming months. That even if job gains level out. Although, the only question left is for what length of time? And, it could be, realistically, at least through year’s end.