The real estate market has been a hot topic since the COVID-19 pandemic began in 2020. Mortgage rates were reduced, due to the state of the economy, which helped offset the sting of higher prices. Because of this, U.S housing gained about $2.5 trillion in value last year — the most in a single year since 2005, according to a Zillow analysis.
However, home sales declined between February and April as home prices hit all-time highs.
The National Association of Realtors just released June 2021 home sale numbers, and we’re happy to report that the month brought a 1.4% increase in home sales (to a seasonally adjusted 5.86 million dollars), ending the four-month decline. The results missed analyst expectations by .3%, but remain above activity seen before the COVID-19 pandemic.
What’s more, the median existing-home price for all housing types in June hit $363,300, the highest level recorded since January 1999.
Yahoo Finance spoke with Lawrence Yun, NAR chief economist, about the recent data. “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” Yun said. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”
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