Existing home sales tally the number of previously constructed homes, condominium 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. (National Association of Realtors) Why Investors Care
| Released on 6/26/08 For May 2008 | ||||||||||||
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Highlights
The housing market proved thankfully mixed in May with new home sales very weak but existing home sales improving. Sales of existing homes rose 2.0 percent in the month to a 4.990 million annual rate, the best rate since February and the second best rate since November. The year-on-year contraction eased more than 1 percentage point to 15.9 percent, much better than the 40 percent contraction for new home sales (data released Wednesday). Supply remains badly swollen but a little less so in May at 10.8 months vs. 11.2 months in April.
Price readings were positive especially given the size of supply. Both the median and average prices showed solid low single digit month-to-month gains with year-on-year contraction easing more than 1 percentage point to 6.3 percent for the median ($208,600) and 6.5 percent for the average ($253,100).
Sales in the West were positive in the month, up 2 percent and another contrast with the new home sales report where the region saw a low double-digit decline. The dollar firmed and stocks bounced from lows in reaction to the report which, along retail sales, are the biggest pluses for the month of May.
Existing home sales fell another 1.0 percent in April to an annualized pace of 4.890 million units, matching January as the lowest in nine years of available data. Supply on the market ballooned further, rising to 11.2 months from 10.0 months in March for the worst reading since 1985. The median sales price rose 1.1 percent from March to $202,300 but was still down 8.0 percent from a year ago.
Existing home sales Consensus Forecast for May 08: 5.00 million-unit rate
Range: 4.84 to 5.15 million-unit rate
![[Chart]](chart.gif)
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Existing home sales reached a peak in mid-2005 and have been easing since. Typically, a distinct reverse relationship exists between home sales and mortgage rates. |
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