EmailEconomic
Last Update: 22-May-13 10:18 ET
Existing Home Sales
Highlights
- Existing home sales improved modestly in April, but still fell short of the 5.00 mln barrier. Sales increased to 4.97 mln from an upwardly revised 4.94 mln (from 4.92 mln) in March. The Briefing.com consensus expected home sales to increase to 4.98 mln.
Key Factors
- For all intents and purposes, home sales have been flat since November 2012.
- The median price increased 11.0% y/y to $192,800 in April.
- A limited supply of available properties is keeping the lid on overall sales growth. Inventories inched up to a 5.2-months supply in April from 4.7 months. Under normal conditions, supply tends to fluctuate around 6-months supply.
- Without an influx of supply, price growth cannot be constrained and homebuyers may be priced out of the market.
- Distressed properties accounted for only 18% of all sales in April. That was down from 21% in March and 28% in April 2012. Distressed properties sold for an average discount of between 14% - 16% to a comparable nondistressed existing home. With the shadow inventory of distressed properties on the decline, these sales should continue to comprise a lower percentage of overall sales. That means there is more upward pressure on overall existing home prices.
Big Picture
- The steady increase in existing home prices should act as an incentive for homeowners to list their home for sale and alleviate the current supply constraints.
| Category | APR | MAR | FEB | JAN | DEC |
|---|---|---|---|---|---|
| Existing Home Sales | 4.97M | 4.94M | 4.95M | 4.94M | 4.90M |
| Months Supply | 5.2M | 4.7 | 4.6 | 4.3 | 4.5 |
| Median Price Y/Y | 11.0% | 11.6% | 11.3% | 10.3% | 11.1% |
