Modest inventory growth leads to July existing-home sales gain!
July saw a second straight month of existing-home sales growth, with completed transactions up 2.0% from June to hit a seasonally adjusted annual rate of 5.99 million units.
That’s according to the National Association of Realtors (NAR), which also noted that sales ticked up annually, growing 1.5% from the same month one year prior.
“We see inventory beginning to tick up, which will lessen the intensity of multiple offers,” said Lawrence Yun, NAR's chief economist. Total housing inventory at the end of July was at 1.32 million units, up 7.3% from June, though still down 12.0% from July 2020. Unsold inventory sits at a 2.6-month supply at the current sales pace, a slight improvement from June’s 2.5-month level and down from 3.1 months one year ago.
The market, it appears, is on its way to some impression of balance, though as Yun observed, its entry-level price ranges are still suffering from lack of supply.
“Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available,” Yun said. Arnie Aurellano Scotsman Guide.