The National Association of Realtors reported in July that existing home sales increased 3.2 percent in June. This increase represents an annual rate of 5.49 million units, the highest level of sales since February 2007. This is most likely the result of pent up demand as potential homebuyers who have been sitting on the sidelines enter the market. Sellers as well are becoming more active as they are seeing prices recover, leading to quality inventory.
Compared to last year, sales in June were up by 9.6% and existing home sales have now increased on a year over year basis for nine consecutive months. The average time sales time for a property was 34 days in June. That’s the quickest since NAR began tracking this metric in May 2011.
According to Lawrence Yun, NAR’s chief economist, 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 said. “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.”