Existing-Home Sales Boosted in June by First-Time Homebuyers
Boosted by a greater share of sales to first-time buyers not seen in nearly four years, existing-home sales climbed 1.1% to a seasonally adjusted annual rate of 5.57 million in June. Only the Northeast saw a decline in closings in June, and sales to investors fell to their lowest overall share since July 2009. This is the fourth consecutive monthly increase.
Lawrence Yun, NAR chief economist, says the impressive four month streak of sales gains through June caps off a solid first half of 2016 for the housing market.
“Existing sales rose again last month as more traditional buyers and fewer investors were able to close on a home despite many competitive areas with unrelenting supply and demand imbalances,” he said. “Sustained job growth as well as this year’s descent in mortgage rates is undoubtedly driving the appetite for home purchases.”
“The modest bump in June sales to first-time buyers can be attributed to mortgage rates near all-time lows and perhaps a hopeful indication that more affordable, lower-priced homes are beginning to make their way onto the market,” adds Yun. “The odds of closing on a home are definitely higher right now for first-time buyers living in metro areas with tamer price growth and greater entry-level supply — particularly areas in the Midwest and parts of the South.”