In June, existing home sales ended a four-month declining trend. On a seasonally adjusted yearly basis, sales of previously owned single-family homes, townhouses, condos, and cooperative flats increased by about 1% to 5.85 million units, up 23% from June 2020. Three of the country’s four major regions saw increased activity month over month.
According to the National Association of Realtors (NAR), the percentage rise was constant across total sales and each of its components for the month. Single-family house and condo sales increased by 1% to around 5.1 million and 720,000 yearly units, respectively. Single-family home sales increased 19% year over year, while condo sales increased 56%.
The overall housing inventory was 1.25 million units at the end of June, up 3% from May but still below the 1.50 million available in June of the previous year. At the current sales rate, the current amount indicates a 2.5-month supply, which is slightly higher than May’s supply but lower than June 2020.
In June, first-time buyers accounted for 31% of transactions, which was steady from May but down from the previous June. Individual investors or second-home purchasers, who account for a large number of cash purchases, accounted for 14% of all sales, with cash sales accounting for 23% of the total. Foreclosures, distressed sales and short sales made up less than 1% of all transactions.
Existing-home sales in the West increased by around 2%, to 1,200,000 units, up 23% year over year. The median price increased by 17% to $507,000.
With inventory increasing slightly, the market may be shifting somewhat in favor of buyers, and it could be time to consider entering the market. If you are thinking about doing so, remember to begin with a mortgage preapproval.
What is a preapproval?
A preapproval letter, given to you by your Loan Officer, shows how much the lender has approved for you, which is important to do before looking at any houses. By knowing your budget, you can work on getting a general idea of the additional costs that will come with your new home. It is important to include this information in your budget, so you don’t risk going over it. By keeping track of all of your expenses, you can relax knowing that you can afford it all.
Getting preapproved also allows you to finalize your mortgage faster after finding the place you want to call home. You are able to take care of most of the paperwork beforehand, so you have one less task to worry about at the end.
And most importantly, it gives you a better chance of getting the house you want because it shows the seller you are eligible for a loan to purchase the house.
Please do not hesitate to contact me for how to compete in this competitive real estate market. Email me at ky[email protected] or give me a call at 916.880.8059!
With nearly a decade of experience in the mortgage and real estate industries, I have a strong understanding of how to evaluate an individual’s situation and determine how to best meet their goals. My approach for California, Nevada, and Colorado current or future homeowners is to educate, advise and deliver a top-notch customer experience.
I’m committed to working for my clients as their mortgage expert, advocate, and partner in their journey toward purchasing or refinancing a home.