Sales of existing homes rose 2.6 percent in June, topping an annual rate of 5 million for the first time since last October.
Despite June’s gains, existing home sales are below where they were a year ago. But there are signs that sales should continue to increase in the coming months.
"With inventories at their highest level in over a year, and price gains slowing to much more welcoming levels in many parts of the country,” said NAR Chief Economist Lawrence Yun. “This bodes well for rising home sales in the upcoming months as consumers are provided with more choices.”
But supply shortages in certain areas, particularly the West, means that construction of new homes needs to increase before housing makes a full recovery, he said.
The median price for an existing home in June was $223,300, up 4.3 percent from June 2013. Foreclosures and short sales accounted for 11 percent of existing-home sales in June, down from 15 percent a year earlier.
Michelle Farber Ross