Global| May 20 2016U.S. Existing Home Sales and Prices Near Recovery High
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing homes increased 1.7% (6.0% y/y) to 5.450 million (SAAR) during April from 5.360 million in March, revised from 5.330 million. Sales have been notably volatile m/m during the past year, but the latest reading was just [...]
Sales of existing homes increased 1.7% (6.0% y/y) to 5.450 million (SAAR) during April from 5.360 million in March, revised from 5.330 million. Sales have been notably volatile m/m during the past year, but the latest reading was just shy of the high reached during the economic recovery. It remained down sharply, however, versus the record high reached in 2005. The latest result outpaced the improvement to 5.390 million sales expected in the Action Economics Forecast Survey. Existing single-family home sales edged 0.6% higher to 4.810 million (6.2% y/y) last month following a 6.0% rise.
The median price of all previously owned homes increased 5.0% to $232,500 (6.3% y/y) from an downwardly revised $221,500. Annualized growth in prices has been roughly steady for the past two years, but falls short of the double-digit growth in 2013. The average price of an existing home increased 4.0% to $275,000 (4.2% y/y).
Home sales were strongest last month in the Midwest where they posted a 12.1% gain (12.1% y/y) to 1.390 million. That rise was followed by a 2.8% increase (17.5% y/y) in the Northeast to 740,000. Previously owned home sales in the South declined 2.7% (+4.3% y/y) to 2.190 million. Sales in the West eased 1.7% (-3.4% y/y) to 1.130 million.
The number of existing homes on the market declined 3.6% y/y, and the months' supply of homes rose to 4.7, about where it's been for three years.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | Apr | Mar | Feb | Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 5,450 | 5,360 | 5,070 | 6.0 | 5,254 | 4,935 | 5,087 |
| Northeast | 740 | 720 | 630 | 17.5 | 691 | 645 | 658 |
| Midwest | 1,390 | 1,240 | 1,120 | 12.1 | 1,240 | 1,136 | 1,201 |
| South | 2,190 | 2,250 | 2,190 | 4.3 | 2,151 | 2,051 | 2,040 |
| West | 1,130 | 1,150 | 1,130 | -3.4 | 1,172 | 1,103 | 1,188 |
| Single-Family Sales | 4,810 | 4,780 | 4,510 | 6.2 | 4,626 | 4,344 | 4,484 |
| Median Price Total ($, NSA) | 232,500 | 221,500 | 212,100 | 6.3 | 219,867 | 206,708 | 195,667 |
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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