| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Annual Rate | 4.250M | 4.150M to 4.310M | 4.30M | 4.28M | 4.29M |
| Month over Month | 0.2% | -3.4% | -3.2% | ||
| Year over Year | -20.4% | -23.2% | -23.0% |
Highlights
The NAR data on sales of existing homes in May shows a 0.2 percent increase to 4.30 million units at a seasonally adjusted annual rate after a small upward revision to 4.29 million units in April. Existing home sales are down 20.4 percent from 5.40 million units in May 2022. The Econoday consensus is 4.25 million units.
NAR Chief Economist Lawrence Yun said that the month-over-month reading is essentially unchanged and due to relative stability in mortgage rates. Sales of existing single-family homes dip 0.3 percent in May to 3.85 million units from 3.86 million units. Sales of multi-unit existing homes are up 4.7 percent to 450,000 in May after 430,000 in April.
The median price of an existing home in May is up 2.6 percent month-over-month to $396,100 from $385,900 in April, but down 3.1 percent from $408,600 in May 2022. Yun noted that it is normal for prices to rise in the first months of the year, then level off and decline in the second half of the year.
The inventory of homes available for sale remains tight. In May, there is 3.0 months' worth of homes available for sale, a negligible increase from 2.9 months in April, but above the 2.6 months in May 2022. Yun noted that the lack of supply of existing units is benefiting the new homebuilders who are taking up some of the demand.
Yun said,"Home sales are in a slump," nonetheless homes on the market are getting multiple offers and"one-third of homes are getting above listing price". He also observed that,"Demand is strongest in the affordable price range" while more expensive properties remain on the market longer.
In May, the average time for a home to stay on the market was 18 days, down from 22 days in April, but a little longer than the 16 days in May 2022. Yun said,"This is a fast moving market even with the slump".
NAR Chief Economist Lawrence Yun said that the month-over-month reading is essentially unchanged and due to relative stability in mortgage rates. Sales of existing single-family homes dip 0.3 percent in May to 3.85 million units from 3.86 million units. Sales of multi-unit existing homes are up 4.7 percent to 450,000 in May after 430,000 in April.
The median price of an existing home in May is up 2.6 percent month-over-month to $396,100 from $385,900 in April, but down 3.1 percent from $408,600 in May 2022. Yun noted that it is normal for prices to rise in the first months of the year, then level off and decline in the second half of the year.
The inventory of homes available for sale remains tight. In May, there is 3.0 months' worth of homes available for sale, a negligible increase from 2.9 months in April, but above the 2.6 months in May 2022. Yun noted that the lack of supply of existing units is benefiting the new homebuilders who are taking up some of the demand.
Yun said,"Home sales are in a slump," nonetheless homes on the market are getting multiple offers and"one-third of homes are getting above listing price". He also observed that,"Demand is strongest in the affordable price range" while more expensive properties remain on the market longer.
In May, the average time for a home to stay on the market was 18 days, down from 22 days in April, but a little longer than the 16 days in May 2022. Yun said,"This is a fast moving market even with the slump".
Market Consensus Before Announcement
After April's 4.28 million annualized rate, existing home sales in May are expected to slip slightly to a 4.25 million rate. The National Association of Realtors described sales as"bouncing back and forth" but remaining"above recent cyclical lows".
Definition
Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.
Description
This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.
Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.
Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.
Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
