Eye On Housing
Existing home sales, as reported by the National Association of Realtors, increased for the third consecutive month in July, and remained at the highest level since February 2007; but the first-time buyer share fell for the second consecutive month to the lowest level since January. Total existing home sales increased by 2.0% in July to a seasonally adjusted rate of 5.59 million units combined for single-family homes, townhomes, condominiums and co-ops, up from a downwardly revised 5.48 million units in June. July existing sales were up 10.3% from the same period a year ago, and have increased year-over-year for ten consecutive months.
Existing sales increased in by 4.1% in the South and 3.2% in the West, but were flat in the Midwest and fell 2.8% in the Northeast. Year-over-year, all four regions also increased, ranging from 11.3% in the West to 9.4% in the Northeast.
Total housing inventory in July decreased by 0.4% from June, and is 4.7% below its level a year ago. At the current sales rate, the July unsold inventory represents a 4.8-month supply, down from 4.9 months in June. Some 43% of existing homes in July were on the market for less than a month, down from 47% the previous month which was the highest share since June 2013.
The distressed sales share decreased to 7% in July, down from 8% in June and 10% in May, compared favorably to the 9% share during the same month a year ago. Distressed sales are defined as foreclosures and short sales sold at deep discounts. The July all cash sales share increased to 23% from 22% the previous month which matched the lowest share since December 2009. Individual investors purchased a 13% share compared to the 12 % share of homes in June, and 16% in July of 2014. The withdrawal of cash investors will create more opportunity for first-time buyers.
The July median sales price of $234,000 was 5.6% above the same month a year ago, and represented the 41st consecutive month of year-over-year price increases. The median condominium/co-op price decreased to $221,800 in July, but was up 3.2% from the same month a year ago.
The Pending Home Sales Index fell 1.8% in May. Although total existing sales continued to grow in July, the first-time buyer share slipped.
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