Global| Jun 22 2010U.S. Existing Home Sales Slip
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing single-family home sales slipped following the expiration of a Federal home-buyer tax credit. Existing home sales fell 2.2% to 5.660M last month following April's little revised 8.0% increase according to the [...]
Sales of existing
single-family home sales slipped following the expiration of a Federal
home-buyer tax credit. Existing home sales fell 2.2% to 5.660M last
month following April's little revised 8.0% increase according to the
National Association of Realtors. May sales disappointed Consensus
expectations for sales of 6.16M. Total sales include sales of condos
and co-ops. Sales of existing single-family homes alone fell 1.6% from
April to 4.980M. (These data have a longer history than the total sales
series). Sales of condos and co-ops rose 32.6% from last year.
The median price of all existing homes rose in May to $179,600. Though prices remained off roughly 25% from the 2007 peak they have risen 9.1% from the February low. The price of a single-family home rose 4.0% to $179,400 (2.7% y/y). Earlier price weakness sharply raised home affordability -- by three-quarters from the 2006 low. This rise in home prices lowered homes' affordability by 9.5% versus one year ago. The median family income for existing home buyers was $60,498 and mortgage payments amounted to 14.9% of that total.
The number of unsold homes (single-family & co-ops) for sale slipped m/m but remained up 1.1% y/y. At the current sales rate there was an 8.3 months' supply of homes on the market. That was down from a high of 10.1 months during April of 2008. For single-family homes, the inventory fell m/m to a 7.8 months' supply.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data is available in the REALTOR database.
The Homeownership Gap from the Federal Reserve Bank of New York is available here.
| Existing Home Sales (Thous, SAAR) | May | April | March | May Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Total | 5,660 | 5,790 | 5,360 | 19.2% | 5,160 | 4,893 | 5,674 |
| Northeast | 890 | 1,090 | 900 | 12.7 | 863 | 845 | 1,010 |
| Midwest | 1,330 | 1,330 | 1,210 | 22.0 | 1,166 | 1,130 | 1,331 |
| South | 2,150 | 2,140 | 1,970 | 22.9 | 1,913 | 1,860 | 2,243 |
| West | 1,290 | 1,230 | 1,290 | 15.2 | 1,216 | 1,064 | 1,095 |
| Single-Family Sales | 4,980 | 5,060 | 4,700 | 17.5 | 4,573 | 4,341 | 4,960 |
| Median Price, Total, $ (NSA) | 179,600 | 172,300 | 169,600 | 2.7 | 172,742 | 197,233 | 216,633 |
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.
