National median displays marked increase
Thursday, July 19, 2012
Existing-home prices continued to show gains in June and sales increased despite tight supplies of affordable homes limiting first-time buyers, according to the National Association of REALTORS®.
The national median existing-home price for all housing types was $189,400 in June, up 7.9 percent from a year ago. This marks four back-to-back monthly price increases from a year earlier, which last occurred in February to May of 2006. June's gain was the strongest since February 2006 when the median price rose 8.7 percent from a year prior.
Total existing-home sales in June 2012 are 4.5 percent higher than in June 2011.
Lawrence Yun, NAR chief economist, saysthe bigger story is lower inventory and the recovery in home prices. "Despite the frictions related to obtaining mortgages, buyer interest remains solid. But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets," he says. "The price improvement also results from fewer distressed homes in the sales mix."