Existing Home Sales Soar a Record 24.7% in July

August 21, 2020 by Dan McCue
This Monday, April 27, 2020, photo shows a sale pending sign on a home in Mount Lebanon, Pa. (AP Photo/Gene J. Puskar, File)

WASHINGTON – Sales of existing homes in the United States rose by an unprecedented 24.7% in July extending the summer rebound from the coronavirus after the global pandemic hammered the market in late winter and spring.

The National Association of Realtors said Friday that sales of existing homes jumped last month to a seasonally adjusted annual rate of 5.86 million.

With consecutive months of record-breaking gains, purchases are now up 8.7% from a year ago. Home sales rose 20.7% in June, a record that lasted one month.

“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days,” said Lawrence Yun, NAR’s chief economist.

“With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021,” he said.

The housing market has been one of the more resilient sectors of the economy during the pandemic, but market activity continues to hinge on supply, which was limited even before the coronavirus outbreak.

The number of available homes for sale was 1.5 million units, down 2.6% from June and 21.1% from one year ago. At the current sales pace, there is a 3.1-month supply of houses, down from 3.9 months in June and the 4.2 months from July 2019.

The median price for a home cracked the $300,000 mark for the first time ever, settling at $304,100, up 8.5% from July 2019.

Yun noted these dire inventory totals have a substantial effect on sales.

“The number of new listings is increasing, but they are quickly taken out of the market from heavy buyer competition,” he said. “More homes need to be built.”

Sales exploded in every region in the country, led by the Northeast and West, where sales grew by more than 30%. The Midwest was close behind as sales there rose 27.5%, while sales in the South rose 19.4%.

Economy

Fixing Unemployment Insurance for Better Economic Recovery
Economy
Fixing Unemployment Insurance for Better Economic Recovery
September 18, 2020
by Kate Michael

WASHINGTON — Emergency expansions to Unemployment Insurance provided critical support to workers across the country during the early months of the pandemic. But the major component of these expansions, an additional $600 in weekly benefits, expired at the end of July. With lawmakers continuing to be... Read More

Democrats Weigh Next Steps After Trump Backs Bigger Stimulus
Congress
Democrats Weigh Next Steps After Trump Backs Bigger Stimulus

WASHINGTON — Some House Democrats are keeping pressure on House Speaker Nancy Pelosi to bring a new coronavirus relief bill up for a vote next week as they look to signal to voters that the party is pursuing a deal to bolster the economy. Pelosi said... Read More

Fed Signals Rates Will Stay Near Zero for at Least Three Years
Federal Reserve
Fed Signals Rates Will Stay Near Zero for at Least Three Years

The Federal Reserve left interest rates near zero and signaled it would hold them there through at least 2023 to help the U.S. economy recover from the coronavirus pandemic. The Federal Open Market Committee “expects to maintain an accommodative stance of monetary policy” until it achieves... Read More

Despite Pressure for COVID-19 Relief Deal, Stalemate Continues
Congress
Despite Pressure for COVID-19 Relief Deal, Stalemate Continues

WASHINGTON — Speaker Nancy Pelosi on Tuesday headed a call from her members to commit to keeping the House in session until there’s a coronavirus relief deal, but the vow does little to break the stalemate in bipartisan negotiations that is at the heart of Democrats’... Read More

Problem Solvers Step Into Relief Bill Void to Offer Bipartisan Plan
Congress
Problem Solvers Step Into Relief Bill Void to Offer Bipartisan Plan
September 15, 2020
by Dan McCue

WASHINGTON - A bipartisan group of 50 centrist lawmakers on Tuesday unveiled a $1.5 trillion proposal they hope will end the current stalemate over new relief to bolster the coronavirus battered economy. The Problem Solvers Caucus, led by co-chairs Reps. Josh Gottheimer, D-N.J., and Tom Reed,... Read More

Trump Made a Promise to Save Coal in 2016. He Couldn’t Keep It
Donald Trump
Trump Made a Promise to Save Coal in 2016. He Couldn’t Keep It

President Donald Trump spent more than $1 billion in taxpayer funds, rolled back environmental rules and tried to stop power plant closings to fulfill a vow he made to West Virginia coal miners in the 2016 campaign. But nothing he’s done is rescuing the coal industry.... Read More

News From The Well
scroll top