The National Association of Realtors (NAR) will publish its second-quarter update for America’s Metro home prices on Wednesday, August 7, 2019.
As such, this seemed like the perfect time to do a quick review of the U.S. real estate market for June 2019. According to NAR, National real estate statistics for the month of June indicate America’s realtors sold 5.27 million units. The Median price of those sold units was roughly $285,700.
June Real Estate Trends
- First-time homebuyers up 31% on a year-over-year basis
- All cash buyers down 22% from 2018
- Distressed real estate sales down 3% from 2018
- June real estate sales down 2.2.2% from 2018
- June median real estate sales price up 4.8% from 2018
- June real estate listings hit 1.9 2 million nationally–up 4.3.3% from 2018
- June Days on Market: 27
- Lack of real estate inventory for mid-to-lower priced homes elevates asking price
- Signed contracts in June up 1.6% from 2018
Looking forward, NAR’s housing forecasts for 2019 projects approximately 5.3 million real estate transactions, slower price growth, and a 30-year fixed mortgage rate of approximately 4 percent.
National Real Estate Sales by Price Range
- $100,000-$200,000 = 36%
- $250,000-$500,000 = 39%
- $500,000-$750,000 = 11%
- $750,000-$1 million = 4%
- $1 million plus = 3%
Unfortunately as the Dow sold off on August 5, 2019, NAR’s chief economist, Lawrence Yun posted a somewhat ominous tweet for the real estate industry.
“Mortgage rates this week will reach fresh clothes, but for the wrong reasons. The prospect of a major trade war between the two largest economies in the world is hurting broad business prospects. Businesses spending on factory expansion and software purchases have already declined, and could be exacerbated further due to the latest trade war tensions. Economic recession is becoming a genuine possibility. If there is a job cutting recession, which often occurs with delayed flag after a stock market correction, the low interest rates will not help home sales nor home prices.” Yun concluded his tweet with “hope.”: Let’s hope the satisfactory trade deal can be reached so that the longest US economic expansion can continue along with solid job games and wage growth.”
Instant Reaction: Lawrence Yun, NAR Chief Economist, on The Dow, August 5, 2019. pic.twitter.com/ARdQ1LQuWr
— NAR Research (@NAR_Research) August 5, 2019