Global| Jun 26 2008U.S. Existing Home Sales Flat for Several Months
by:Tom Moeller
|in:Economy in Brief
Summary
The National Association of Realtors reported that, in May, sales of existing homes rose 2.0% to 4.99M after two months of slight decline. The figure was about as expected. Total sales include sales of condos and co-ops. The latest [...]
The National Association of Realtors reported that, in May, sales of existing homes rose 2.0% to 4.99M after two months of slight decline. The figure was about as expected. Total sales include sales of condos and co-ops.
The latest level of sales is near the low reached last November after having declined by one-third from the 2005 peak. 
Sales of existing single family homes rose 1.6% and, together with the overall series, were about level with this past Winter. Nevertheless, the series for single family homes (which has a longer history than the total) indicated that sales were at the lowest level since early-1998.
By region, home sales in the West rose 2.0% for the third month of meaningful increase. Elsewhere sales in the Northeast and in the Midwest offset sharp April declines while sales down South fell to a new low.
Median home prices rose 3.7% last month. Prices were up 6.6% from their February low after versus a 33% rate of decline last Fall. Indeed, prices may have firmed with sales after the one-third rate of decline this past Winter. However, prices typically firm come Spring.
The number of unsold homes on the market fell 1.4% (+2.4% y/y). At the current sales rate the inventory still amounts to 10.8 months supply which is near the record series high. For single family homes there was a 10.4 months supply at the current sales rate.
| Existing Single Family Home Sales (Thous) |
May | y/y % | April | May '07 | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|---|
| Total | 4,990 | -15.9 | 4,890 | 5,930 | 5,672 | 6,508 | 7,076 |
| Northeast | 910 | -15.0 | 870 | 1,070 | 1,008 | 1,090 | 1,168 |
| Midwest | 1,160 | -16.5 | 1,100 | 1,390 | 1,331 | 1,491 | 1,589 |
| South | 1,910 | -17.0 | 1,920 | 2,300 | 2,240 | 2,576 | 2,704 |
| West | 1,020 | -12.8 | 1,000 | 1,170 | 1,093 | 1,353 | 1,617 |
| Single-Family | 4,410 | -14.5 | 4,340 | 5,160 | 4,958 | 5,703 | 6,181 |
| Median Price, Total, $ | 208,600 | -6.3 | 201,200 | 219,900 | 216,617 | 222,000 | 218,217 |
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.
