Inventory breakdown
In Q2, total existing-home sales, including single family and condos, dropped 0.9 percent quarter-over-quarter to a seasonally adjusted annual rate (SAAR) of 5.57 million, but they are still 1.6 million higher than last year’s pace.
At the end of the quarter, there were 1.96 million homes for sale — a 7.1 percent year-over-year decrease. The average supply during the second quarter was 4.2 months, down from 4.6 months in Q2 2016.
The national family median income rose to $71,529, but the increase wasn’t enough to keep up with rising home prices. To purchase a single-family home at the median price ($255,600), a buyer making a 5 percent down payment would need an income of $55,169. A buyer making 10 percent down payment would need an income of $53,213, and a buyer making a 20 percent down payment would need an income of $47,300.
“Mortgage rates have subsided in recent months, which has only somewhat helped take away some of the sting prospective buyers are experiencing with the deteriorating affordability conditions in many areas,” said Yun.
“Household incomes may be rising and giving consumers assurance that now is a good time to buy, but these severe inventory shortages will likely continue to be a drag on sales potential the second half of the year.”
How did buying patterns vary across the country?
The five most expensive housing markets in the second quarter were San Jose, California ($1,183,400); San Francisco ($950,000); Anaheim-Santa Ana, California ($788,000); urban Honolulu ($760,600); and San Diego ($605,000).
The five lowest-cost metro areas in the second quarter were Youngstown-Warren-Boardman, Ohio ($87,000); Cumberland, Maryland ($98,200); Decatur, Illinois ($107,400); Binghamton, New York ($109,000); and Elmira, New York ($111,600).
- In the Northeast, existing-home sales rose 1.3 percent, 0.4 percent above a year ago.
Median price: $282,300, a 3.2 percent year-over-year increase.
- In the Midwest, existing-home sales rose 4.2 percent, 0.5 percent above a year ago.
Median price: $204,000, a 6.6 percent year-over-year increase.
- In the South, existing-home sales dipped 3.0 percent, but are 2.5 percent above a year ago.
Median price: $229,400, a 6.7 percent year-over-year increase.
- In the West, existing-home sales dipped 3.7 percent, but are 3.1 percent above a year ago.
Median price: $372,400 a 7.5 percent year-over-year increase.
Existing-home sales are based on transaction closings from MLSs and include single-family homes, town homes, condominiums and co-ops.
SAASs are used in reporting monthly data to help accommodate for seasonal variation; the annual rate for any given month represents what the total number of actual sales for a year would be if the pace for that month were maintained for a whole year.
NAR releases quarterly median single-family price data for approximately 175 Metropolitan Statistical Areas (MSAs). In some cases the MSA prices may not coincide with data released by state and local Realtor associations. Any discrepancy may be due to differences in geographic coverage, product mix and timing. In the event of discrepancies, Realtors are advised that for business purposes, local data from their association may be more relevant.
Source: inman.com
