Global| Jun 22 2020U.S. Existing Home Sales Continue to Fall in May
by:Tom Moeller
|in:Economy in Brief
Summary
• Existing home sales hit lowest since October 2010. • Sales fall across the nation. • Prices decline modestly. The National Association of Realtors (NAR) reported that sales of existing homes dropped 9.7% (-26.6% y/y) during May to [...]
• Existing home sales hit lowest since October 2010.
• Sales fall across the nation.
• Prices decline modestly.
The National Association of Realtors (NAR) reported that sales of existing homes dropped 9.7% (-26.6% y/y) during May to 3.910 million (AR) from an unrevised 4.330 million in April. The Action Economics Forecast Survey expected April sales of 3.90 million. Existing home sales data are compiled when sales close; the total includes single-family houses plus condos and co-ops.
The median price of an existing home eased 0.7% (+2.3% y/y) to $284,600 after a 2.1% April improvement. The mean sales price slipped 0.6% last month (+1.5% y/y) to $319,300. The median home price in the Northeast rose 4.9% (7.8% y/y) to $327,900. In the Midwest prices slipped 0.4% (+3.0% y/y) to $227,400. The median home price in the South declined 1.0% (+2.1% y/y) to $247,400 while prices in the West were off 2.3% (-0.2% y/y) to $408,400. The price data are not seasonally adjusted.
All four regions of the country experienced declines in sales. In the West, sales declined 11.1% (-35.1% y/y) to a record low of 720,000.Sales in the South fell 8.0% (-25.1% y/y) in May to 1.730 million after a 17.9% April drop. In the Northeast, sales were off 13.0% (-29.9% y/y) to 470,000, the lowest level since July 2010. The Midwest experienced a 10.0% falloff (-20.2% y/y) in sales to 990,000 that followed a 12.0% decline in April.
Sales of existing single-family homes, which date back to 1968, declined 9.4% (-24.8% y/y) to 3.570 million units, the lowest since November 2010. Sales of condos and co-ops weakened 12.8% (-41.4% y/y) to 340,000 units, down 45.2% during the last five months.
The number of homes on the market declined 18.8% y/y. The months' supply of homes on the market rose sharply to 4.8 from 4.0 in April. It was the largest backlog since November 2015. All figures date back to 1999.
The data on existing home sales, prices and affordability are compiled by the National Association of Realtors. Total sales and price data and regional sales can be found in Haver's USECON database. Regional price and affordability data and national inventory data are available in the REALTOR database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | May | Apr | Mar | May Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total Sales | 3,910 | 4,330 | 5,270 | -26.6 | 5,330 | 5,341 | 5,531 |
| Northeast | 470 | 540 | 650 | -29.9 | 687 | 689 | 735 |
| Midwest | 990 | 1,100 | 1,250 | -20.2 | 1,248 | 1,265 | 1,301 |
| South | 1,730 | 1,880 | 2,290 | -25.1 | 2,281 | 2,246 | 2,270 |
| West | 720 | 810 | 1,080 | -35.1 | 1,115 | 1,141 | 1,225 |
| Single-Family Sales | 3,570 | 3,940 | 4,740 | -24.8 | 4,754 | 4,742 | 4,907 |
| Median Price Total ($, NSA) | 284,600 | 286,700 | 280,700 | 2.3 | 269,783 | 257,267 | 245,950 |
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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