Wednesday, August 24, 2016

Existing Home Sales decline in July to 5.39 million SAAR

by Bill McBride on 8/24/2016 10:06:00 AM

CR Note: I'm in NYC and I will post graphs when I return home.

From the NAR: Existing-Home Sales Lose Steam in July

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.2 percent to a seasonally adjusted annual rate of 5.39 million in July from 5.57 million in June. For only the second time in the last 21 months 2, sales are now below (1.6 percent) a year ago (5.48 million).

Total housing inventory at the end of July inched 0.9 percent higher to 2.13 million existing homes available for sale, but is still 5.8 percent lower than a year ago (2.26 million) and has now declined year-over-year for 14 straight months. Unsold inventory is at a 4.7-month supply at the current sales pace, which is up from 4.5 months in June.
Sales in July (5.39 million SAAR) were 3.2% lower than last month, and were 1.6% below the July 2015 rate.

According to the NAR, inventory increased to 2.13 million in July from 2.11 million in June.   Headline inventory is not seasonally adjusted, and inventory usually decreases to the seasonal lows in December and January, and peaks in mid-to-late summer.

Inventory decreased 5.8% year-over-year in July compared to July 2015.  

Months of supply was at 4.7 months in July.

This was below consensus expectations (but not a surprise for CR readers). For existing home sales, a key number is inventory - and inventory is still low. I'll have more after I return home.