Home sales in June surged to their highest level in years, putting 2016 on track to be the best year for home sales since the recession. Near rock-bottom mortgage rates continue to lure more and more buyers into the market despite steadily rising prices and low inventory levels.
Interest rates decreased slightly from the month prior and remain near all-time lows. Mortgage rates have declined recently due to the drop in U.S. Treasury rates created by the uncertainty surrounding the U.K.’s vote to leave the European Union.
The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of 5.6 million homes during the month of June. This was an increase of 1.1 percent from May, and an increase of 3.0 percent from June of last year.
The median home price reached a record $247,700 in June, which was up 3.7 percent from May and up 4.8 percent from June of last year. The median home price has increased by nearly $11,400 in the past year alone.
There was a 4.6-month supply of housing inventory in June, which decreased slightly from May. The total number of homes for sale decreased by 6.1 percent compared to June of last year. Strong demand spurred by dropping interest rates will likely keep inventory levels suppressed, particularly in the starter home market.
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