Despiternslightly slowing sales, the median existing home price was $214,200rnin June, a 13.5 percent annual increase and the 16^{th</supconsecutive month of 22 such changes. The last time there was such anrnunbroken string of price hikes was February 2005 to May 2006.</p}

Formingrnthe background to today’s NAR report are the rapidly changingrninterest rates in recent weeks. According to Freddie Mac, thernnational average commitment rate for a conventional 30-year fixedrnrate mortgage rose to 4.07 percent in June from 3.54 percent in May,rnthe highest rate since October 2011. The June average was 39 basisrnpoints higher than a year earlier. </p

Lawrence Yun, NAR chief economist, saidrnthere is enough momentum in the market, even with higher interestrnrates.  “Affordability conditions remain favorable in most ofrnthe country, and we’re still dealing with a large pent-up demand,”rnhe said.  “However, higher mortgage interest rates will biterninto high-cost regions of California, Hawaii and the New York Cityrnmetro area market.”</p

Sales of single-family homes were 1.1 percent lower in June thanrnin May, a seasonally adjusted annual rate of 4.50 million compared torn4.55 million, and 14.5 percent higher than the 3.93 million pace inrnJune 2012. Existing condo and coop sales fell 1.7 percentrnmonth-over-month to 580,000 units from 590,000 units and 20.8 percentrnabove the June 2012 rate of 480,000 units. The median sales price ofrna single-family home was $217,700 in June, 13.2 percent above a yearrnago. The median existing condo price was up 15.4 percent torn$210,200.</p

Eight percent of sales in June were foreclosures and 7 percentrnwere short sales. In May distressed sales had an 18 percent marketrnshare and in June 2012 they represented 26 percent of sales. Foreclosures sold an an average discount of 16 percent and shortrnsales 13 percent compared to market transactions thus some of thernincrease in home prices can be attributed to the diminishing marketrnshare of distressed homes.</p

Total housing inventory at the end of June rose 1.9 percent torn2.19 million existing homes available for sale representing arn5.2-month supply at the current sales pace, up from 5.0 months inrnMay.  Listed inventory remains 7.6 percent below a year ago,rnwhen there was a 6.4-month supply. </p

Gary Thomas, NAR President, said some owners who were hurt by therndownturn are now in the market.  “Rising values have improvedrnthe position of homeowners, and 16 percent of Realtors surveyedrnin June report they worked with a client that previously had anrnunderwater mortgage,” he said.</p

“Of those previously underwater owners, 53 percent were planningrnto buy another home and 22 percent intend to rent, but 25 percentrnweren’t sure what they’d do.  In addition, 47 percent ofrnRealtors report they have potential sellers who are waiting forrnadditional price appreciation before they sell,” Thomas said.</p

Marketing time continues to fall with a median time on market forrnall homes at 37 days in June compared to 41 days in May, and 70 daysrnin June 2012.  Short sales were on the market for a median of 68rndays, while foreclosures typically sold in 39 days and non-distressedrnhomes took 35 days.  Forty-seven percent of all homes sold inrnJune were on the market for less than a month.</p

First-time buyers accounted for 29 percent of purchases in June,rncompared with 28 percent in May and 32 percent in June 2012. rnYun said this figure should be closer to 40 percent of the market,rnfirst time buyers are being held back by tight credit and veryrnlimited lower priced inventory in much of the country. </p

All-cash sales made up 31 percent of transactions in June, downrnfrom 33 percent in May and 29 percent in June 2012.  Individualrninvestors, who account for many cash sales, purchased 17 percent ofrnhomes in June, compared to 18 percent in May and 19 percent in Junern2012.</p

Regionally, existing-home sales in the Northeast declined 1.6rnpercent to an annual rate of 630,000 but are 16.7 percent above Junern2012.  The median price in the Northeast was $270,400, 6.8rnpercent above a year ago.</p

Existing-home sales in the Midwest were unchanged in June at arnpace of 1.21 million, 17.5 percent higher than in June 2012. Thernmedian price was $170,100, up 8.9 percent on an annual basis. </p

In the South, existing-home sales slipped 1.5 percent to an annualrnlevel of 2.03 million in June but are 16.0 percent above June 2012. rnThe median price was $186,300, a 13.7 percent annual increase. </p

The pace of sales in the West declined 1.6 percent to 1.21 millionrnin June but are 11.0 percent above a year ago.  Continuingrntight inventory helped the median price jump 19.9 percent from Junern2012 to $282,000.

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