Existing Homes Sales Show Tight Market
The National Association of Realtors released their recent Existing Home Sales report for July, and it showed a very tight housing market. Existing Home Sales are the single best measure of the health of the real estate market as they are completed transactions of single family homes, townhomes, condominiums, and co-ops.
Here are some highlights:
- On average, homes listed for sale went under contract in under 30 days for the fourth straight month. Fifty-one percent of homes sold in July were on the market for less than a month.
- The median existing-home price for all housing types in July was $258,300, up 6.2 percent from July 2016 ($243,200). July’s price increase marks the 65th straight month of year-over-year gains.
- Inventory is still a major issue (not enough of it) with only 1.92 million existing homes available for sale, and is now 9.0 percent lower than a year ago (2.11 million) and has fallen year-over-year for 26 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.8 months a year ago.
- First-time buyers were 33 percent of sales in July, which is up from 32 percent both in June and a year ago.
- All-cash sales were 19 percent of transactions in July, up from 18 percent in June but down from 21 percent a year ago.
- Existing Home Sales came in at a seasonally adjusted annual rate of 5.44 million in July from a downwardly revised 5.51 million in June. July’s sales pace is still 2.1 percent above a year ago, but is the lowest of 2017.
Overall, the above data is excellent showing steady appreciation and demand; it appears that only the lack of available inventory is keeping Existing Home Sales from grown at an even faster pace.
Current Mortgage Rates:
Rates Currently Trending: Neutral
Mortgage rates are trending sideways this morning. Last week the MBS market improved by +7 ps. This wasn’t enough to improve mortgage rates or fees. Mortgage rate volatility remained low.
Mortgage Rates Trends: