US home sales rise for first time in 5 months

The NAR report shows that the median sales price in July increased 4.2% year over year to $422,600, a record for any July in NAR's data.

Although the inventory of homes available increased slightly in July to 1.33 million, it remains well below the pre-Covid-19 pandemic level of more than 1.9 million. That is equivalent to four months of supply at the current sales pace.

While the inventory of available homes rose slightly in July, it remains well below pre-pandemic levels. Photographer: Sam Hall/Bloomberg.

Closings rose 1.3% from the previous month to an annual rate of 3.95 million, the slowest pace for any July since 2010, according to data released by the National Association of Realtors on Thursday. That was in line with the average estimate of analysts surveyed by Bloomberg.

“Despite modest gains, home sales remain sluggish,” NAR chief economist Lawrence Yun said in a prepared statement.

“But consumers are certainly having more choice and affordability is improving due to lower interest rates,” he stressed.

The residential real estate market weakened significantly after the Federal Reserve (Fed) began raising interest rates in early 2022. The combination of high costs and limited supply is driving the market weakness.

Additionally, rising borrowing costs have led to a reduction in the number of properties for sale, causing a spike in asking prices.

While potential homebuyers are now waiting for a widely anticipated interest rate cut from the Fed, affordability may be slow to improve due to high home prices.

According to NAR's latest affordability index, the typical family in June earned just 93.3% of the qualifying income needed to afford a median-priced home in the United States.

While the 30-year fixed mortgage rate has fallen to 6.5%, the Mortgage Bankers Association's gauge of home purchase applications remains at its lowest level since February. That suggests potential buyers are waiting for further declines in borrowing costs as well as some relief from high asking prices.

The NAR report found that 62% of homes sold were on the market for less than a month in July, compared with 65% in June. Meanwhile, nearly a quarter sold for more than their list price, also down from the previous month.

Existing home sales make up the bulk of total U.S. sales and are measured when contracts close. The government will release new home sales figures for July on Aug. 23.

Diep Nguyen (According to Bloomberg)

Source: https://www.congluan.vn/doanh-so-ban-nha-cua-hoa-ky-tang-lan-dau-tien-sau-5-thang-post308900.html