Realtors and economists say insufficient equity has contributed to the tight housing inventories.5. That could lead to more houses being put up for sale. While some buyers may be forced out of the market by higher prices, homeowners are seeing their equity rise. With supply well below what it was during the housing bubble in 2006, the median price for a previously owned home increased 6.5 percent from a year ago to a record $236,400. A six-month supply is viewed as a healthy balance between supply and demand. In addition, the share of distressed sales, foreclosures and short sales, was the smallest since last August.Īt June’s sales pace, it would take 5.0 months to clear houses from the market, down from 5.1 months in May. Homes sold in June typically were on the market for 34 days, the shortest amount of time since May 2011. Supply was up only 0.4 percent from a year ago. Last month, the stock of unsold homes on the market rose 0.9 percent from May to 2.30 million units. Residential construction has accelerated but is not keeping up with household formation, which should keep homebuilders busy. Still, housing gains continue to be curbed by a shortage of properties for sale. It was the fourth straight month that this segment remained at or near 30 percent, although it remained well below the 40 percent to 45 percent that economists and realtors say is required for a robust housing market.Įconomists expect that housing will soften the drag on the economy from manufacturing, which continues to struggle with the lingering effects of a strong dollar and spending cuts in the energy sector, and contribute to growth this year.

Those who already own a home accounted for the bulk of transactions in June, with the share of first-time buyers slipping a bit.įirst-time homebuyers accounted for 30 percent of the sales, down from 32 percent in May. The NAR said home sales last month were likely boosted by buyers rushing into the market to beat rising mortgage rates, but it added that strong economic fundamentals were the main driver. “As housing numbers trend more positive, the Fed will become increasingly comfortable in beginning to raise rates.”Ī separate report from the Mortgage Bankers Association suggested sales could increase further as applications for home purchase loans rose 1 percent last week from a week earlier.

Quicken home & business 2017