US homes sales were the lowest in 14 years last month as inventory dries up
Home sales just dropped to a 14-year-low as buyers face a shortage of inventory.
Just 4.16 million units were sold in June, down 19% from June of last year.
Existing home sales slumped 3.3% over the past month to a seasonally adjusted 4.16 million homes in June, according to the National Association of Realtors. That’s a 19% decline from the 5.13 million home sales reported in June of last year, and it marks the lowest number of homes sold in June since 2009.
The drop in home sales is largely due to the dearth of inventory, as high mortgage rates have discouraged homeowners from listing their properties for sale. The supply of available homes stayed relatively flat in June at 1.08 million units – but that’s still 14% lower than the available supply recorded a year ago.
At the current rate of sales, the US has just 3.1 months of unsold housing inventory left on the market, the group estimated.
“There are simply not enough homes for sale,” NAR chief economist Lawrence Yun said in a statement on Thursday. “The market can easily absorb a doubling of inventory.”
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