The fact that home sales were up in June came as a welcome surprise.
The REAL Trends Housing Market Report for June 2014 shows that housing sales increased 5.1 percent from the same month a year ago, a substantial improvement over the five prior months of 2014. The annual rate of new and existing home sales for June 2014 was 5.880 million units up from a rate of 5.596 million in June 2013.
Housing prices rose an average of 3.2 percent from June 2013 which is the slowest rate of home price appreciation in the past six months. The downward trend in average home price appreciation is good news on the affordability front.
Housing unit sales for June 2014 increased 8.4 percent in the South, the best performance in all regions. The Midwest saw sales units increase 7.3 percent and the Northeast had a 4.3 percent increase. The Western region had a small decrease of 1.7 percent.
“June 2014 sales of new and existing homes were a great and welcome surprise after nearly 8 months of flat to declining year over year home sales. An improving job market and the continuation of historically low mortgage rates likely had the greatest impact. The strength of foreign purchases as reported by NAR also helped home sales in certain regions,” said Steve Murray, editor of the REAL Trends Housing Market Report.
The average price of homes sold in June 2014 in the Western region saw an increase in sales price of 7.4 percent which was the best performing region in the country in this measurement. The Midwest region saw average prices rise 5.5 percent followed by the Southern region where prices were up 4.3 percent. The Northeast region saw average prices for homes sold slide 1.4 percent.
“It will be interesting to see whether this surprising result carries over into July and August home sales that are usually the strongest months of the year for the closing of home sales,” said Murray.
Written by Steve Murray, REAL Trends publisher