October 20, 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 rose 0.7% in September to an annualized rate of 5.390 million. This comes in above expectations of an annualized rate of 5.300 million and above August’s rate of 5.350 million. Single-family home sales increased 1.1% while condo sales decreased 1.6%. Single-family sales are down 1.5% year-over-year and condos are down 3.2%. The median price is at $245,100 up 4.2% from the last year. Supply rose 1.6% in September and is down 6.4% from 12 months ago. The month’s supply remains at 4.2 months.
Slightly higher month-to-month rates in two out of the four regions contributed to the increase in September. The Midwest and West regions were up 1.6% and 3.3%, while the South was down 0.9% from August. Over the past twelve months, three out of the four regions pulled down the year-over-year reading. From last year, the Northeast and Midwest regions were down 1.4% and 1.5%, respectively. The South has fallen 2.3% from last year understandably with the recent hurricanes putting a damper on existing home sales the last few months.