Home Sales Hit a Record-Setting Rebound. 🏡 📈
Home Sales Hit a Record-Setting Rebound
With a worldwide health crisis that drove a pause in the economy this year, the housing market was greatly impacted. Many have been eagerly awaiting some bright signs of a recovery. Based on the latest Existing Home Sales Report from the National Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.
According to NAR, home sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June:
“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth.”
This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue on, too:
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown…This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to continue taking advantage of this historic opportunity to buy. This fierce competition among buyers is contributing to home price increases as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:
“The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.”
The graph below shows home price increases by region, powered by low interest rates, pent-up demand, and a decline in inventory on the market:Yun also indicates:
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”
Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward a recovery. If you’re ready to buy a home this year, let’s connect to make sure you have the best possible guide with you each step of the way.
The real estate market in Beverly Hills & Los Angeles.
Considering what is going on with the pandemic, we are doing very well with closed sales. There have been 280 closed sales of $5 plus million so far this year, versus 298 at this time last year, ( Down 16%).
Of these, 88 were $10 plus million and there were 83 $10 plus million sales at this time last year, ( Up 6%).
21 were $20 plus million this year and there were 23 closed sales of $20 plus million at this time last year. (Down 11%).
10 of these sales were $30 plus million for both years and 5 were $40 plus million this year, versus 3 $40 plus million sales at this time last year, (Up 66%).
There are 79 pending sales of $5 plus million at the moment, 20 of these are $10 plus million, 5 are $20 plus million and 1 is $30 plus million.
Of the 21 sales of $20 plus million this year, the buyers are still mostly American, 18 Americans, likely do to travel restrictions to America from foreign countries.
The areas of the 21 sales of $20 plus million are:
5 in Beverly Hills, 5 in Bel Air, 1 in Holmby Hills and 2 each in Sunset Strip, BHPO, Brentwood, Palisades and Malibu.
Of the 21 $20 plus million dollar sales, 8 were not officially listed when sold.
That's it for the month, have a healthy and successful August and if you are looking for help in buying or selling call Christophe Choo at 310.488.3044.