Housing Market: No Longer The Weakest Link
According to today's report from the National Association of Realtors:
Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June.
Highlights of the report include:
1. Following a $8,100 increase in May, the median home price increased in June by another $7,100. Median home prices have increased in 4 out of the last five months, following a string of 7 consecutive monthly price declines starting last July.
2. There have been three consecutive monthly sales increases of 110,000 (April), 60,000 (May) and 170,000 (June) for the first time in more than a year.
3. Total housing inventory in June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May and down from last June's inventory of 11 months. The 9.4-month supply is the lowest level in at least a year.
WSJ Article: "Economists React."
Bottom Line: When you simultaneously have increasing unit sales, rising median home prices, and declining inventory levels, you've got all of the ingredients necessary for a real estate market rebound.