| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Annual Rate | 3.900M | 3.800M to 3.940M | 3.95M | 3.890M | 3.90M |
| Month over Month | 1.3% | -5.4% | -5.1% | ||
| Year over Year | -2.5% | -5.4% | -5.1% |
Highlights
The NAR data show existing home sales rose 1.3 percent in July from June to 3.95 million units at a seasonally adjusted annual rate. The July sales pace is a little above the consensus of 3.90 million units in the Econoday survey of forecasters. Sales of single-family homes rose 1.4 percent in July to 3.57 million units while multi-unit sales were unchanged at 380,000 units.
NAR Chief Economist Lawrence Yun said,"Despite the modest gain, home sales are still sluggish. But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."
As of August 15, the Freddie Mac rate for a 30-year fixed rate mortgage is at 6.49 percent after 6.47 percent in the prior week, and lower than 7.09 percent in the year-ago week. The 30-year fixed rate is the lowest since early May 2023.
The median price of an existing home is down 1.0 percent to $422,600 in July after $426,900 in June, and up 4.2 percent from July 2023. Existing home prices tend to rise in the first half of the year and trend lower in the second half. The supply of homes available for sale is at 4.0 months in July after 4.1 in June and expanded from 3.3 in July 2023. Yun noted that the months' supply was no longer"super tight" and closer to"normal".
Homes are on the market for an average of 24 days in July, up slightly from 22 in June and 20 days in July 2023. First time homebuyers accounted for 29 percent of all sales in June, the same as in June and similar to 30 percent in July 2023. All cash sales are 27 percent of all sales in July, a little less than the 28 percent in June and a little more than the 26 percent in July 2023.
NAR Chief Economist Lawrence Yun said,"Despite the modest gain, home sales are still sluggish. But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."
As of August 15, the Freddie Mac rate for a 30-year fixed rate mortgage is at 6.49 percent after 6.47 percent in the prior week, and lower than 7.09 percent in the year-ago week. The 30-year fixed rate is the lowest since early May 2023.
The median price of an existing home is down 1.0 percent to $422,600 in July after $426,900 in June, and up 4.2 percent from July 2023. Existing home prices tend to rise in the first half of the year and trend lower in the second half. The supply of homes available for sale is at 4.0 months in July after 4.1 in June and expanded from 3.3 in July 2023. Yun noted that the months' supply was no longer"super tight" and closer to"normal".
Homes are on the market for an average of 24 days in July, up slightly from 22 in June and 20 days in July 2023. First time homebuyers accounted for 29 percent of all sales in June, the same as in June and similar to 30 percent in July 2023. All cash sales are 27 percent of all sales in July, a little less than the 28 percent in June and a little more than the 26 percent in July 2023.
Market Consensus Before Announcement
After June's 3.89 and May's 4.11 million annualized rates, existing home sales in July are expected to edge higher to a 3.90 million rate. The National Association of Realtors has noted that resales are slowly shifting from a seller's market to a buyer's market.
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.
