Global| Nov 20 2014U.S. Existing Home Sales Improve As Prices Fall Sharply
Summary
Sales of existing single-family homes rose 2.4% to 5.170 million (AR, -1.7%) during September from an unrevised 5.050 million in August. Sales were 3.9% below the peak reached last July. The latest level beat expectations for 5.10 [...]
Sales of existing single-family homes rose 2.4% to 5.170 million (AR, -1.7%) during September from an unrevised 5.050 million in August. Sales were 3.9% below the peak reached last July. The latest level beat expectations for 5.10 million sales in the Action Economics Forecast Survey. Sales of single-family homes improved 2.0% (-1.9% y/y) to 4.560 million. Sales of condos and co-ops increased 5.2% (0.0% y/y) to 0.610 million.
The median sales price of an existing single-family home declined 4.0% to $209,700 last month (+5.6% y/y). It was the lowest price since April. Prices were 9.0% below the all-time peak in July 2006.
Sales in the West rebounded 7.1% (-4.0% y/y) to the highest level in twelve months. In the South, sales recovered 5.0% (1.4% y/y) and matched the high for the economic expansion. Sales in the Northeast improved 1.5% (-1.4% y/y) to the highest level since last October. Countering these gains was a 5.6% sales decline (-4.9% y/y) in the Midwest. It was the lowest level since May.
During August, home affordability improved 1.2% (-1.4% y/y) as monthly mortgage payments slipped to 15.9% of median family income, down from its recent high of 16.1%. Mortgage rates averaged 4.24%, down from the January high of 4.54%.
The inventory of unsold homes rose 6.0% y/y to 2.300 million but remained 43% below the 2007 peak. The supply of unsold homes slipped to 5.3 months. That compares to an 11.9 month peak supply in July of 2010.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | Oct | Sep | Aug | Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 5,170 | 5,050 | 5,140 | -1.7 | 5,073 | 4,659 | 4,277 |
| Northeast | 680 | 670 | 640 | -1.4 | 659 | 597 | 543 |
| Midwest | 1,170 | 1,240 | 1,210 | -4.9 | 1,193 | 1,064 | 917 |
| South | 2,120 | 2,020 | 2,120 | 1.4 | 2,032 | 1,834 | 1,683 |
| West | 1,200 | 1,120 | 1,170 | -4.0 | 1,190 | 1,164 | 1,133 |
| Single-Family Sales | 4,560 | 4,470 | 4,540 | -1.9 | 4,471 | 4,128 | 3,792 |
| Median Price Total ($, NSA) | 209,700 | 218,400 | 221,600 | 5.6 | 195,667 | 175,442 | 164,542 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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