Existing home sales rose 2.1 percent year-over-year to 5.44 million on a seasonally adjusted annualized rate (SAAR) but fell 1.3 percent sequentially from June according to the National Association of Realtors® (NAR). Raw monthly home sales in July 2017 (not seasonally adjusted), at 513,000 single family, townhouse, condominium and co-op closings were unchanged from a year ago. Year-to-date monthly home sales of 3.204 million for the first seven months of 2017 were up 2.46 percent from a year ago.
Median price rose 6.2 percent year-over-year to $258,300, marking the 65th consecutive month of year-over-year gains.
The first graph shows the monthly median price and the total number of home sales in the prior 12 months commencing January 2014. Total housing sales (raw monthly data – not seasonally adjusted) for the 12-month period ending July 2017 of 5.53 million was up 3.68 percent versus the 12-months ending July 2016.
The next graph shows the monthly raw data (not seasonally adjusted) for each month commencing January 2014. Following that are median prices for the same time period.
The final graph shows average home price, not seasonally adjusted, monthly commencing January 2007.
Other metrics and insights from the NAR release included:
- Distressed sales made up one-in-every 20 July closings (5 percent): 4 percent were foreclosures and 1 percent short sales
- One-half (51 percent) of the homes sold in July 2017 were on the market for less than one month
- Average days on the market for all properties was 30 days in July
- The number of months of inventory available for sale dropped to 4.2 months from 4.8 months a year ago with 6 months considered normal
- All-cash sales made up one-out-of-every five transactions (19 percent), down from 21 percent a year ago
- Investors bought 13 percent of all home sales
- 1st-time homebuyers made up one-out of every three transactions (33 percent), up slightly from 32 percent a year ago
- Approximately 60 percent of all homebuyers that financed the purchase of their property paid 6 percent down or less in every month this year
To read the full news release from NAR on July 2017 existing homes sales click https://www.nar.realtor/news-releases/2017/08/existing-home-sales-slide-13-percent-in-july
Once again, prices rise as demand outstrips supply. Will be sticking with my beginning-of-the-year forecast for a 2.2 percent increase in total existing home sales for 2017. Given the lack of inventory and material increase in prices, that would not be bad at all.