Global| Jun 23 2014U.S. Existing Home Sales Improve to Seven-Month High and Pull Prices Higher
by:Tom Moeller
|in:Economy in Brief
Summary
Earlier improvement in home sales picked up steam last month. Sales of existing single-family homes in May jumped 4.9% (-5.0% y/y) to 4.890 million (AR) from 4.660 million in April, earlier reported as 4.650 million. Despite the [...]
Earlier improvement in home sales picked up steam last month. Sales of existing single-family homes in May jumped 4.9% (-5.0% y/y) to 4.890 million (AR) from 4.660 million in April, earlier reported as 4.650 million. Despite the increase, however, sales remained 9.1% below the peak reached last July. The latest level exceeded expectations for 4.73 million sales in the Action Economics Forecast Survey. Sales of single-family homes improved 5.7% (-5.7% y/y) to 4.300 million. Sales of condos and co-ops were unchanged, both m/m and y/y.
Sales were strongest in the Midwest where they rose 8.7% (-7.4% y/y) followed by a 5.7% (-0.5% y/y) increase in the South. In the Northeast, sales gained 3.3% (-3.1% y/y) and sales in the West nudged 0.9% higher (-1.4% y/y).
The median sales price of an existing single-family home increased 5.9% to $213,400 last month (5.1% y/y) and roughly equaled the peak reached eleven months earlier. Prices remained 7.4% lower than the all-time peak in July 2006.
Home affordability during April declined 2.3% (-10.3% y/y) as higher home prices offset the stability of mortgage rates at 4.39%.
The inventory of unsold homes rose 2.2% last month (6.0% y/y) to 2.280 million but remained 43.6% below the 2007 peak. The supply of unsold homes slipped m/m to 5.6 months. That compares to an 11.9 month supply in July of 2010.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | May | Apr | Mar | Y/Y % | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total | 4,890 | 4,660 | 4,590 | -5.0 | 5,073 | 4,659 | 4,277 |
| Northeast | 620 | 600 | 600 | -3.1 | 659 | 597 | 543 |
| Midwest | 1,130 | 1,040 | 1,040 | -7.4 | 1,193 | 1,064 | 917 |
| South | 2,050 | 1,940 | 1,920 | -0.5 | 2,032 | 1,834 | 1,683 |
| West | 1,090 | 1,080 | 1,030 | -11.4 | 1,190 | 1,164 | 1,133 |
| Single-Family Sales | 4,300 | 4,070 | 4,040 | -5.7 | 4,471 | 4,128 | 3,792 |
| Median Price Total ($, NSA) | 213,400 | 201,500 | 196,700 | 5.1 | 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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