Existing Home Sales Increase By More Than Expected In July

(RTTNews) - Monday morning, the National Association of Realtors released its report on existing home sales in the month of July, showing that sales of existing home increased by more than economists had been anticipating.

The report showed that existing home sales rose by 3.1 percent to 5.00 million in July from a downwardly revised level of 4.85 million in June. Economists had expected existing home sales to increase to 4.90 million from the 4.86 million originally reported for the previous month.

Despite the monthly increase, however, NAR noted that existing home sales remain down 13.2 percent compared to July of 2007.

NAR also said that the national median existing-home price for all housing types was $212,400 in July, down 7.1 percent from the same month a year ago.

Nonetheless, NAR chief economist Lawrence Yun said that home prices in some regions could increase in the near future.

“Sales have picked up significantly in several Florida and California markets,” Yun said, adding, “Home prices generally follow sales trends after a few months of lag time.”

At the same time, Yun noted that inventory remains high in many parts of the country, with total housing inventories at the end of July representing an 11.2-month supply compared to an 11.1-month supply at the end of June.

The report showed that the monthly increase in existing home sales reflected strong sales growth in the West and Northeast, where existing home sales increased by 9.7 percent and 5.9 percent, respectively. Sales in the Midwest and South showed more modest increases.

Commenting on the data, NAR President Richard F Gaylord, said that the recent up-and-down pattern in existing home sales may break soon.

“We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” Gaylord said.

The ongoing weakness in the housing market has been a source of concern for economists for the last several quarters, with the recent decrease in home values contributing to a reduction in consumer confidence.

The Commerce Department will provide additional data on the housing market on Tuesday, with the release of its report on new home sales in the month of July. New home sales are expected to edge down to 525,000 in July from 530,000 in June.

For comments and feedback: contact editorial@rttnews.com

Posted in Categories: Economy, Forex, Releases, USA.