Existing?-home sales hit eight-year high in June [Video]
Posted on Wednesday, July 22, 2015 at 2:54:13 PM
On the heels of news that homebuilder confidence is as high as it's been in years, new data was released showing that existing-home sales have hit their highest pace in eight years.
All the major regions in the U.S. experienced sales gains in June, in addition to beating out 2014's figures for six consecutive months, research from the National Association of Realtors indicates. Last month, completed existing-home sales rose 3.2 percent to a seasonally adjusted annual rate of 5.49 million.
"Buyers have come back in force, leading to the strongest past two months in sales since early 2007," Lawrence Yun, chief economist of the NAR, explained. "This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy."
Meanwhile, inventory remains low, even though it inched up 0.9 percent, which is driving prices up and affordability down. Expected homebuilding activity in the coming months could reverse this trend, as an index measuring homebuilders' confidence hit a nearly decade-long-high recently. Still, people are buying for now.
Sales have hit their highest pace since February 2007, and are 9.6 percent higher than they were a year ago. It seems that while employment rises and interest rates stay low, people are eager to buy up homes.