MeatyREADS

Existing Home Sales

August 25, 2008 – 8:19 pm by BH

Existing home sales data were released this morning at 10 AM (NAR). Sales increased in July to 5,000,000 from 4,850,000 and are at their highest level since February of this year (5,030,000). Year to year sales declined 13.2% and were up 3.1% over the month. Along with the sales increase, prices declined to $212,400 from $215,100 in June. Year to Year prices are down 7.1%.

Sales of existing single family homes followed a similar pattern. Existing single family home sales increased to 4,390,000 in July from 4,260,000 in June. Month to month this was an increase of 3.1% but a decline over the year of 12.4%. Prices fell to $210,900 in July from $213,600 in June and are down 7.7% versus a year ago. On the bright side, home prices of existing single family homes were below $200,000 earlier this year and relative to recent months July was actually pretty strong. Aside from June, sales prices are at their highest level in 2008.

It is too early to say we have reached a bottom in the housing market, but we have now had several months of stability in existing home sales. While the hardest hit areas are still reeling (NYT) there is a glimmer of hope. In terms of the national accounts (GDP) we will still have negative residential investment through this year and probably into the first quarter. We should see improvement after that.