Global| Mar 22 2017U.S. Existing Home Sales Fall to Five-Month Low; Inventory Remains Tight
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing single-family homes declined 3.7% (+5.4% y/y) to 5.480 million units (AR) during February, and reversed January's increase. Expectations had been for 5.590 million purchases in the Action Economics Forecast Survey. [...]
Sales of existing single-family homes declined 3.7% (+5.4% y/y) to 5.480 million units (AR) during February, and reversed January's increase. Expectations had been for 5.590 million purchases in the Action Economics Forecast Survey. Sales of existing single-family homes fell 3.0% last month (+5.8% y/y) to 4.890 million units, and also reversed the January rise. Sales of condos & co-ops fell 9.2% (+1.7% y/y) to 590,000 following an 8.3% increase. The figures are reported by the National Association of Realtors.
The number of homes on the market declined 6.4% y/y to 1.750 million. The months' sales supply of homes improved slightly m/m to 3.8, but remained near the lowest level since January 2005.
The median price of all previously owned homes nudged 0.5% higher (7.7% y/y) to $228,400. The rise followed declines in six of the prior seven months from a June peak of $247,600. The average price of an existing home eased 0.2% to $270,100 (+5.8% y/y).
Sales performance was mixed around the country last month. Home sales in the Northeast declined 13.7% (+1.5% y/y) to 690,000, the lowest level since July. Sales in the Midwest were off 7.0% (+2.6% y/y) to 1.200 million, the lowest level in twelve months. Sales in the West fell 3.1% (+9.6% y/y) to 1.250 million following a 6.6% rise. In the South, sales improved 1.3% (5.9% y/y) to 2.340 million, the highest level since December 2006.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | Feb | Jan | Dec | Y/Y % | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | 5,480 | 5,690 | 5,510 | 5.4 | 5,452 | 5,254 | 4,935 |
| Northeast | 690 | 800 | 760 | 1.5 | 733 | 691 | 645 |
| Midwest | 1,200 | 1,290 | 1,310 | 2.6 | 1,304 | 1,240 | 1,136 |
| South | 2,340 | 2,310 | 2,230 | 5.9 | 2,218 | 2,151 | 2,051 |
| West | 1,250 | 1,290 | 1,210 | 9.6 | 1,197 | 1,172 | 1,103 |
| Single-Family | 4,890 | 5,040 | 4,910 | 5.8 | 4,838 | 4,646 | 4,344 |
| Median Price Total ($, NSA) | 228,400 | 227,300 | 233,300 | 7.7 | 232,067 | 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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