Global| Aug 21 2014U.S. Existing Home Sales Increase to Ten-Month High
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing single-family homes strengthened 2.4% to 5.150 million (AR) during July from 5.030 million in June, last month reported as 5.040 million. Sales were at the highest level since last September, but nevertheless [...]
Sales of existing single-family homes strengthened 2.4% to 5.150 million (AR) during July from 5.030 million in June, last month reported as 5.040 million. Sales were at the highest level since last September, but nevertheless remained 4.3% below the peak reached last July. The latest level exceeded expectations for 5.010 million sales in the Action Economics Forecast Survey. Sales of single-family homes improved 2.7% (-4.2% y/y) to 4.550 million. Sales of condos and co-ops were unchanged m/m (-4.8% y/y) at 0.600 million.
Sales were strongest in the South where they increased 3.4% (0.5% y/y) and in the West where they rose 2.6% (-8.6% y/y). In the Midwest sales rose 1.7% (-4.7% y/y) but in the Northeast sales remained unchanged (-9.9% y/y).
The median sales price of an existing single-family home improved 0.4% to $222,900 last month (4.9% y/y). Prices remained 3.3% lower than the all-time peak in July 2006.
During June, home affordability declined 4.1% (-9.0% y/y) as higher home prices offset the fall in mortgage rates to 4.23%. Monthly mortgage payments amounted to 16.3% of median family income.
Improved sales and higher prices are prompting an increased number of homes for sale. The inventory of unsold homes rose 3.5% last month (5.8% y/y) to 2.370 million but remained 41.3% below the 2007 peak. The supply of unsold homes held at 5.5 months for the third straight month. That compares to an 11.9 month supply in July of 2010.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics survey, reported in the AS1REPNA database.
The minutes to the latest FOMC meeting can be found here.
| Existing Home Sales (SAAR, 000s) | Jul | Jun | May | Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 5,150 | 5,030 | 4,910 | -4.3 | 5,073 | 4,659 | 4,277 |
| Northeast | 640 | 640 | 620 | -9.9 | 659 | 597 | 543 |
| Midwest | 1,220 | 1,200 | 1,130 | -4.7 | 1,193 | 1,064 | 917 |
| South | 2,120 | 2,050 | 2,050 | 0.5 | 2,032 | 1,834 | 1,683 |
| West | 1,170 | 1,140 | 1,110 | -8.6 | 1,190 | 1,164 | 1,133 |
| Single-Family Sales | 4,550 | 4,430 | 4,320 | -4.2 | 4,471 | 4,128 | 3,792 |
| Median Price Total ($, NSA) | 222,900 | 222,000 | 212,000 | 4.9 | 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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