For the second straight month, Existing Home Sales topped 5 million monthly on a seasonally-adjusted annualized basis. That hasn't happened in 6 years.
The National Association of Realtors (NAR) reports just 2.19 million homes for sale nationwide at the end of June, an 8% decrease from one year ago. At the current rate of sales, the entire stock of U.S. homes for sale would be "sold out" before the New Year -- there's just 5.2 months of inventory.
This is a big deal because analysts believe that a 6.0-month supply of homes represents a market in balance between buyers and sellers.When supply dips below six months, sellers gain leverage over buyers which, in turn, can push home prices higher.
Home supply has favored sellers since September 2012. Not surprisingly, home values since last year.
The June report showed the median Days on Market for homes sold in June dropped to 37 days. More than half of all homes sold in less than a month.
To put this "speed" in perspective, compare the last three years :
- June 2010 : Median 97 Days on Market
- June 2011 : Median 70 Days on Market
- June 2012 : Median 37 Days on Market
Homes are selling quickly these days. Purchase-ready purchasers appear to have a better chance to going to contract than buyers without a plan or pre-approval letter (Call me, I can help you with your questions, options and your credit approval letter).
This is what happens when the number of buyers outnumbers the sellers.