Global| Nov 22 2016U.S. Existing Home Sales Reach 2007 High; Prices Decline
by:Tom Moeller
|in:Economy in Brief
Summary
Sales of existing homes increased 2.0% (5.9% y/y) during October to 5.600 million (AR) after a 3.6% increase to 5.490 million in September, revised up from 5.470 million. The latest level was the highest since February 2007. [...]
Sales of existing homes increased 2.0% (5.9% y/y) during October to 5.600 million (AR) after a 3.6% increase to 5.490 million in September, revised up from 5.470 million. The latest level was the highest since February 2007. Expectations had been for 5.45 million purchases in the Action Economics Forecast Survey. Sales of existing single-family homes improved 2.3% last month (6.6% y/y) to 4.990 million following a 4.5% increase. Sales of condos & co-ops remained unchanged both m/m and y/y at 610,000 following a 3.2% decline. The figures are reported by the National Association of Realtors.
The median price of all previously owned homes declined 1.3% to $232,200, the fourth straight month of decline. Annualized price growth of 6.0% 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 fell to $274,300 (+4.4% y/y).
Improvement in sales was reported around the country. Sales in the South improved 2.8% (4.7% y/y) to 2.220 million, while sales gained 2.3% in the Midwest (6.3% y/y) to 1.360 million. Sales rose 1.4% m/m, and 1.4% y/y, in the Northeast to 750,000 and in the West, sales increased 0.8% (10.4% y/y) to 1.270 million.
The total inventory of homes on the market declined 4.3% y/y to 2.020 million. The months' sales supply of homes ticked lower to 4.3, down from 4.8 months during all of last year and 5.2 months in 2014.
The data on existing home sales, prices and affordability can be found in Haver's USECON database. The regional price, affordability and inventory data are available in the REALTOR database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
| Existing Home Sales (SAAR, 000s) | Oct | Sep | Aug | Y/Y % | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total | 5,600 | 5,490 | 5,300 | 5.9 | 5,254 | 4,935 | 5,087 |
| Northeast | 750 | 740 | 700 | 1.4 | 691 | 645 | 658 |
| Midwest | 1,360 | 1,330 | 1,270 | 6.3 | 1,240 | 1,136 | 1,201 |
| South | 2,220 | 2,160 | 2,140 | 4.7 | 2,151 | 2,051 | 2,040 |
| West | 1,270 | 1,260 | 1,190 | 10.4 | 1,172 | 1,103 | 1,188 |
| Single-Family | 4,990 | 4,880 | 4,700 | 6.6 | 4,626 | 4,344 | 4,484 |
| Median Price Total ($, NSA) | 232,200 | 235,300 | 239,900 | 6.0 | 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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