Sales of previously-owned homes rose in June to another cycle high, fresh evidence of a housing market that continues to power through ongoing headwinds. Existing-home sales rose 1.1% to a seasonally adjusted annual rate of 5.57 million in June, the National Association of Realtors said Thursday. That was 3.0% higher than a year ago and the strongest since February 2007. Economists surveyed by MarketWatch had forecast a 5.47 million rate, and April’s pace, previously reported as 5.53 million, was revised down fractionally to 5.51 million. Sales declined 1.3% in the Northeast, rose 3.8% in the Midwest, were unchanged in the South, and ticked up 1.7% in the West. The housing market’s biggest challenge remains tight inventory. In June, supply was 5.8% lower than a year ago, the 13th consecutive month of yearly declines. At the current sales pace it would take 4.6 months to exhaust all available supply, lower than the six months that’s considered a sign of a more balanced market. Those constraints continue to drive prices up. In June, the median price was $247,700, 4.8% higher than a year ago. Despite higher prices, the share of first-time buyers increased. They made up 33% of all purchases, the biggest share in four years. Investors made up only 11% of sales, the lowest since 2009. Still, NAR Chief Economist Lawrence Yun thinks higher prices will weigh down activity in the second half of the year. Foot traffic is down nationwide, and an NAR survey showed the least enthusiasm about buying in the West, where the median home price is $350,000,. NAR will likely revise down its full-year forecast of 5.6 million home sales, Yun said.

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