Us home prices surpass 2006 peak
Photo credit: Cyndie
US home prices have now surpassed their July 2006 peak, as sales continue to accelerate.
The median existing-home price for all housing types in June was $236,400, 6.5 percent above June 2014 and over $6,000 higher than the peak median sales price recorded in July 2006 ($230,400).
June's price increase also marks the 40th consecutive month of year-over-year rises.
Total housing inventory at the end of June inched 0.9 per cent to 2.3 million existing homes available for sale, and is 0.4 per cent higher than a year ago (2.29 million). Unsold inventory is at a 5.0-month supply at the current sales pace, down from 5.1 months in May.
"Limited inventory amidst strong demand continues to push home prices higher," comments NAR chief economist Lawrence Yun, "leading to declining affordability for prospective buyers.
"Local officials in recent years have rightly authorized permits for new apartment construction, but more needs to be done for condominiums and single-family homes."
Indeed, the percentage share of first-time buyers fell to 30 percent in June from 32 percent in May, but remained at or above 30 percent for the fourth consecutive month. A year ago, first-time buyers represented 28 percent of all buyers.
Nontheless, sales of existing homes have risen to their highest pace in over eight years, says the NAR. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 3.2 per cent to a seasonally adjusted annual rate of 5.49 million in June from a downwardly revised 5.32 million in May. Sales are now at their highest pace since February 2007 (5.79 million) and have increased year-over-year for nine consecutive months. They are 9.6 percent above a year ago (5.01 million).
Yun says this year's spring buying season has been the strongest since the downturn.
"Buyers have come back in force, leading to the strongest past two months in sales since early 2007," he adds. "This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy."