Global| Jun 22 2016U.S. Existing Home Sales Reach Highest Level Since 2007
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing homes increased 1.8% (4.5% y/y) during May to 5.530 million (SAAR) from 5.430 million in April, revised from 5.450 million. The latest level was the highest since February 2007. It surpassed expectations for 5.55 [...]
Sales of existing homes increased 1.8% (4.5% y/y) during May to 5.530 million (SAAR) from 5.430 million in April, revised from 5.450 million. The latest level was the highest since February 2007. It surpassed expectations for 5.55 million sales in the Action Economics Forecast Survey. Sales of existing single-family homes gained 1.9% last month (4.7% y/y) to 4.900 million. Sales of condos & cops rose 1.6% (3.3% y/y) to 630,000.
The median price of all previously owned homes increased 3.8% to $239,700 (4.7% y/y) from $230,900, revised from $232,500. Annualized growth in prices has been roughly steady for the past two years, but falls short of the double-digit increases in 2013. The average price of an existing home increased 3.0% to $281,700 (3.2% y/y).
Home sales were strongest last month in the West where they posted a 5.4% rise (-1.7% y/y) to 1.180 million. Home sales in the South followed with a 4.6% rise (6.5% y/y) to 2.280 million. Home sales in the Northeast increased 4.1% (11.6% y/y) to 770,000, but they declined 6.5% (+3.2% y/y) to 1.300 million in the Midwest.
The number of existing homes on the market declined 5.7% y/y, but the months' supply of homes held at 4.7, about where it's been for three years.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | May | Apr | Mar | Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 5,530 | 5,430 | 5,360 | 4.5 | 5,254 | 4,935 | 5,087 |
| Northeast | 770 | 740 | 720 | 11.6 | 691 | 645 | 658 |
| Midwest | 1,300 | 1,390 | 1,240 | 3.2 | 1,240 | 1,136 | 1,201 |
| South | 2,280 | 2,180 | 2,250 | 6.5 | 2,151 | 2,051 | 2,040 |
| West | 1,180 | 1,120 | 1,150 | -1.7 | 1,172 | 1,103 | 1,188 |
| Single-Family | 4,900 | 4,810 | 4,780 | 4.7 | 4,626 | 4,344 | 4,484 |
| Median Price Total ($, NSA) | 239,700 | 230,900 | 221,500 | 4.7 | 219,867 | 206,708 | 195,667 |
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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