July 24, 2017 – Existing home sales provide the number of purchases made for homes, condominiums, and co-ops that have already been built. Existing home sales give an indication of demand for housing. While home resales may not generate new construction jobs like those that housing starts do, they have a similar effect on consumer spending as people purchase items for their new home.
Existing home sales fell 1.8% in June to an annualized rate of 5.520 million. This comes in below expectations of an annualized rate of 5.580 million and well below May’s rate of 5.560 million. Single-family homes fell 2% while multi-family resales are unchanged. Single-family sales grew 0.6% year-over-year and multi-family grew 1.6%. The median price rose 6.5% from the last year. Supply fell 0.5% in June and down 7.1% from 12 months ago, the month’s supply is at 4.3 months, down from 4.6 months a year ago. The average number of days on the market was up to 28 days in June, from 27 days in May but below 34 days a year ago.
Supply actually decreased in June as sales prices continues to rise with the 64th consecutive month of year-over-year gains. With 4.3 months of supply being below the 5-month benchmark and supply having dropped, we expect home resale prices to continue to increase. Increasing sales prices might be keeping first-time home buyers out of the market as their share of sales were down to 32% from 33% in May, as well as all cash sales, which were down to 18% of transactions, the lowest since June 2009.