The number of homes sold, and the price they are selling at, seems to be increasing faster than a Popsicle melting on an Arizona blacktop. Buyers have flooded the market trying to take advantage of the low mortgage interest rates while also trying to scoop up a home before the price increases even more.
As realtor.com reports, existing home sales increased 11 percent from May to June to 583,000. Year-over-year sales also increased 1.9 percent. Unfortunately, the median price for existing homes also increased 4.8 percent year-over-year to $247,700, which marked the 52nd straight month of year-over-year price increases.
Sales this summer were expected to be the best in a decade, and that seems to be exactly what is playing out. However, as more buyers become homeowners and other get priced out of the market, sales will eventually slow. September and October, especially, could post sales declines.
First-time buyers also posted a bit of good news as 33 percent of June buyers were first-time homeowners, the highest percentage since July 2012.