Inventory shortages, the pandemic, and high unemployment would not be enough to hold back pending home sales for June according to the National Association of Realtors. According to the association, pending home sales in June rose 16.6% from May 2020.
In addition total sales on a year-to-year basis compared with 2019 rose 6.3% in June.
Even with the historic low levels of inventory, existing home sales continue to surprise the expert’s projections. The projected sales of existing homes for 2020 is now actually expected to decline by 3%. But we still will have to see how July and August play out, considering how August is traditionally a slow month and there is serious concern over the economic ramifications of the pandemic heading into the fall of 2020.
Previous estimates made by the National Association of Realtors penciled in an expectation of a 7% decline for the year 2020.
What has sustained the industry is the huge number of sales recorded in May, which translated into a 44% increase compared with April 2020.
A definite driver for this incredible surge in buying is the low mortgage rates available to buyers, which broke the 3% level last week.
The National Association of Realtors is projecting that rates will remain at the 3% level for the next 18 months at least.
The association reported in June that it had its largest monthly gain of 20.7% since beginning to track data reaching back to 1968.
Pending home sales per region:
■ Northeast increased 54.4% monthly
■ Midwest increased 12.2% monthly
■ South increased 11.9% monthly
■ West increased 11.7% monthly