U.S. home sales see record high; tight supply, virus crisis restrict growth
Backed by record-low mortgage rates, U.S. home sales reached its strongest record in June. However, the outlook for the housing market remained murky as low inventory and high unemployment rate pressed amid the virus crisis.
Existing home sales advanced 20.7% to a seasonally adjusted annual rate of 4.72 million units in June. This came to be the strongest figure since the National Association of Realtors began tracking the series in 1968. The jump followed after sales dropped to 3.91 million units in May, the weakest record since October 2010.
Though the housing market managed to recover in June after three consecutive months of decline, home resales remained 18% below its pre-pandemic level. In addition to this, the upbeat reading was overshadowed by an upsurge in new virus cases, prompting authorities to reimplement lockdowns and threatening any economic recovery.