Existing Home Sales: July 22, 2013

Look for a pick up in existing home sales due to both seasonal factors and a psychological incentive to buy a house before there is a further increase in mortgage rates as they’ve begun to trend up in the past couple months.

  Prior Consensus Consensus Range
Existing Home Sales – Level – SAAR 5.18 M 5.27 M 5.01 M to 5.45 M

“Existing home sales in May jumped 4.2 percent to an annual sales rate of 5.18 million which was the highest since the home stimulus credits of late 2009. The gain was very convincing and was centered in the key single-family home category which is up 5.0 percent in the May report on top of a 1.2 percent gain in April. Price data were striking with the median price is 8.4 percent in May alone to a recovery best $208,000. The average price, at $255,300, was up 5.6 percent in the month. Year-on-year gains are 15.4 percent for the median price and 11.2 percent for the average. These price data are not derived from repeat transactions and are subject to substantial volatility, but the gains are outstanding nevertheless. Supply did come into the market in May, totaling 2.22 million homes for sales versus 2.15 million in April, but declined relative to the surging sales rate. Supply measured against sales was at 5.1 months compared to 5.2 months in April.” (Bloomberg)

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Sources: Bloomberg.com

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