In June 2015, real estate prices reached record highs as buyers saw a shortage of inventory.
The National Association of Realtors said sales of existing homes climbed 3.2 percent last month. Home sales increased 9.6 percent the past 12 months while number of active listings increased by 0.4%.
Median home prices climbed 6.5 percent over the past 12 months to $236,400, the highest level reported by the Realtors not adjusted for inflation.
Home-buying has recently surged as more buyers are flooding into the real estate market. High demand has not attracted more sellers into the market, causing tight inventories and increasing prices.
Only 5 months’ supply of homes were for sale in June, compared to 5.5 months a year ago and 6 months in a healthy market. Some areas are barely adding any new real estate listings.
Average properties sold in only 34 days in June. Limited supplies could slow sales in the next few months.
Rising home values are stretching the budgets of first-time buyers and owners looking to upgrade. As homes become less affordable, the current demand will likely taper off.
The job market was thriving in 2014 when 3.1 million jobs were added and on pace to add 2.5 million jobs in 2015.
Average 30-year fixed rates were 4.09 percent last week, according to the mortgage giant Freddie Mac. The average has risen from a 52-week low of 3.59 percent.
*Sources NAR and Associated Press (AP)