Global| Jan 24 2017U.S. Existing Home Sales and Prices Fall in December; 2016 Sales Reach 10-Year High
by:Tom Moeller
|in:Economy in Brief
Summary
During all of 2016, sales of existing homes increased 3.8% to 5.452 million, the highest level since 2006, when sales reached 6.478 million. During December alone, however, sales eased 2.8% (+0.7% y/y) to 5.490 million units (AR) from [...]
During all of 2016, sales of existing homes increased 3.8% to 5.452 million, the highest level since 2006, when sales reached 6.478 million. During December alone, however, sales eased 2.8% (+0.7% y/y) to 5.490 million units (AR) from 5.650 million in November, revised up from 5.610 million. Expectations had been for 5.530 million purchases in the Action Economics Forecast Survey. Sales of existing single-family homes fell 1.8% last month (+1.5% y/y) to 4.880 million following no change in November. Sales of condos & co-ops retreated 10.3% (-4.7% y/y) to 610,000 following a 13.3% increase. The figures are reported by the National Association of Realtors.
The median price of all previously owned homes improved 4.0% versus December 2015 to $232,200. The average price of an existing home rose to $274,000 (3.0% y/y).
Sales performance was mixed around the country last month. Home sales in the Northeast declined 2.8% (+2.7% y/y) to 760,000. Sales in the Midwest were off 3.8% (+2.4% y/y) to 1.280 million. Sales in the West declined 4.8% (-1.6% y/y) to 1.200 million. In the South, sales were unchanged (11.6% y/y) at 2.250 million.
The total inventory of homes on the market declined 6.3% y/y to 1.650 million. The months' sales supply of homes fell to 3.6, the lowest point since January 2005.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | Dec | Nov | Oct | Y/Y % | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | 5,490 | 5,650 | 5,570 | 0.7 | 5,452 | 5,254 | 4,935 |
| Northeast | 760 | 810 | 750 | 2.7 | 733 | 691 | 645 |
| Midwest | 1,280 | 1,330 | 1,360 | 2.4 | 1,304 | 1,240 | 1,136 |
| South | 2,250 | 2,250 | 2,190 | 0.4 | 2,218 | 2,151 | 2,051 |
| West | 1,200 | 1,260 | 1,270 | -1.6 | 1,197 | 1,172 | 1,103 |
| Single-Family | 4,880 | 4,970 | 4,970 | 1.5 | 4,838 | 4,646 | 4,344 |
| Median Price Total ($, NSA) | 232,200 | 234,400 | 234,100 | 4.0 | 231,992 | 219,867 | 206,708 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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