By: Teke Wiggin Staff Writer
Existing-home sales slipped in June, but ample pent-up demand and favorable buying conditions should keep the housing market from stumbling in the face of a recent surge in interest rates, the National Association of Realtors (NAR) said today.
“Affordability conditions remain favorable in most of the country, and we’re still dealing with a large pent-up demand,” said Lawrence Yun, chief economist at NAR. “However, higher mortgage interest rates will bite into high-cost regions of California, Hawaii and the New York City metro area market.”
Amid the drop in home purchases, home prices continued to soar above year-ago levels, as inventory edged upwards, NAR said.
Existing-home sales dropped 1.2 percent to a seasonally adjusted annual rate of 5.08 million units in June from a downwardly revised 5.14 million in May, according to NAR.
During the same period, housing inventory rose 1.9 percent to 2.19 million homes, representing a 5.2-month supply of homes at the current rate of sales, NAR said.
That’s up from a five-month supply in May. But inventory in June was still 7.6 percent lower than a year ago, when there was a 6.4-month stock, according to NAR.