The record increase in sales of existing homes comes as housing starts also soar. The housing market is sizzling amid an otherwise troubled economy.
Existing home sales rose 24.7% in July compared to June to a seasonally adjusted annual level of 5.86 million, according to the National Association of Realtors, the highest monthly gain since 1968. June's 20.7% rise was also a record until the latest numbers.
All regions of the country reported strong sales.
"The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days," said Lawrence Yun, NAR's chief economist. "With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021."
In addition to a yearning for better homes in which to work remotely during a pandemic that shows no sign of coming to an end anytime soon, the housing market is being helped by a shortage of available properties for sale and extremely low mortgage rates.
The national inventory of available homes stood at 1.5 million at the end of July, down 21.2% from a year ago.
The strong sales rate is helping drive prices upward. The national median home price in July was $304,100, the first time it has risen above $300,000, and an increase of 8.5% from July of last year. The monthly gain marked 101 straight months of increasing prices.
The strength in housing is one of the anomalous bright spots amid an economy laid low by the coronavirus. It is also driving record sales for home-improvement retailers like Lowe's and Home Depot. Both national chains posted record quarterly sales growth this week.
Housing starts, which eventually turn into housing sales, also have been on a roll, rising 22.6% in July, way more than had been expected, to an annual rate of 1.5 million
Existing home sales rose 24.7% in July compared to June to a seasonally adjusted annual level of 5.86 million, according to the National Association of Realtors, the highest monthly gain since 1968. June's 20.7% rise was also a record until the latest numbers.
All regions of the country reported strong sales.
"The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days," said Lawrence Yun, NAR's chief economist. "With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021."
In addition to a yearning for better homes in which to work remotely during a pandemic that shows no sign of coming to an end anytime soon, the housing market is being helped by a shortage of available properties for sale and extremely low mortgage rates.
The national inventory of available homes stood at 1.5 million at the end of July, down 21.2% from a year ago.
The strong sales rate is helping drive prices upward. The national median home price in July was $304,100, the first time it has risen above $300,000, and an increase of 8.5% from July of last year. The monthly gain marked 101 straight months of increasing prices.
The strength in housing is one of the anomalous bright spots amid an economy laid low by the coronavirus. It is also driving record sales for home-improvement retailers like Lowe's and Home Depot. Both national chains posted record quarterly sales growth this week.
Housing starts, which eventually turn into housing sales, also have been on a roll, rising 22.6% in July, way more than had been expected, to an annual rate of 1.5 million