Global| Sep 22 2014U.S. Existing Home Sales and Prices Retreat
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing single-family homes declined 2.4% to 5.050 million (AR) during August (-5.3% y/y) from 5.140 million in July, last month reported as 5.150 million. Sales were 6.3% below the peak reached last July. The latest level [...]
Sales of existing single-family homes declined 2.4% to 5.050 million (AR) during August (-5.3% y/y) from 5.140 million in July, last month reported as 5.150 million. Sales were 6.3% below the peak reached last July. The latest level fell short of expectations for 5.180 million sales in the Action Economics Forecast Survey. Sales of single-family homes declined 1.8% (-4.9% y/y) to 4.460 million. Sales of condos and co-ops fell 1.7% (-7.8% y/y) to 0.590 million.
Sales in the West led total sales lower with a 5.1% decline (-9.8% y/y) to 1.110 million. Sales in the South followed with a 4.2% retreat (-3.8% y/y) to 2.030 million. Posting a 4.7% increase (-4.3% y/y) to 0.670 million were sales in the Northeast to the highest level since last October. Sales in the Midwest gained 2.5% (-3.9% y/y) to 1.240 million, the highest level in twelve months.
The median sales price of an existing single-family home fell 0.8% to $219,800 last month (+4.8% y/y). Prices remained 4.6% below the all-time peak in July 2006.
During July, home affordability slipped 0.3% (-4.3% y/y) as monthly mortgage payments rose to 16.3% of median family income, the highest level since November 2008.
The inventory of unsold homes rose 4.5% y/y to 2.310 million but remained 42.8% below the 2007 peak. The supply of unsold homes held at 5.5 months for the fourth straight month. That compares to an 11.9 month peak supply in July of 2010.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | Aug | Jul | Jun | Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 5,050 | 5,140 | 5,030 | -5.3 | 5,073 | 4,659 | 4,277 |
| Northeast | 670 | 640 | 640 | -9.9 | 659 | 597 | 543 |
| Midwest | 1,240 | 1,210 | 1,200 | -3.9 | 1,193 | 1,064 | 917 |
| South | 2.030 | 2,120 | 2,050 | -3.8 | 2,032 | 1,834 | 1,683 |
| West | 1,110 | 1,170 | 1,140 | -9.8 | 1,190 | 1,164 | 1,133 |
| Single-Family Sales | 4,460 | 4,540 | 4,430 | -4.9 | 4,471 | 4,128 | 3,792 |
| Median Price Total ($, NSA) | 219,800 | 221,600 | 222,000 | 4.8 | 195,667 | 175,442 | 164,542 |
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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