The national median existing-home price for all housing types was $214,200 in June, up 13.5 percent from June 2012. This marks 16 consecutive months of year-over-year price increases, which last occurred from February 2005 to May 2006.
Distressed homes – foreclosures and short sales – were 15 percent of June sales, down from 18 percent in May, and are the lowest share since monthly tracking began in October 2008; they were 26 percent in June 2012. The decline in sales of distressed homes, which typically sell at a reduced price, accounts for some of the price growth.
Eight percent of June sales were foreclosures, and 7 percent were short sales. Foreclosures sold for an average discount of 16 percent below market value in June, while short sales were discounted 13 percent.
NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said some owners who were hurt by the downturn are now in the market. “Rising values have improved the position of homeowners, and 16 percent of Realtors® surveyed in June report they worked with a client that previously had an underwater mortgage,” he said.
“Of those previously underwater owners, 53 percent were planning to buy another home and 22 percent intend to rent, but 25 percent weren’t sure what they’d do. In addition, 47 percent of Realtors® report they have potential sellers who are waiting for additional price appreciation before they sell,” Thomas said.