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 5/25/07 For Apr 2007 | ||||||||||||
| ||||||||||||
Highlights
April strength in new home sales did not extend to existing home sales, which fell 2.6 percent in the month to a lower-than-expected annual rate of 5.990 million that was below outside expectations. The year-on-year decline is 10.7 percent, the second straight double-digit drop. Existing sales peaked in mid-2005, fell steadily heading into this year, bounced strongly in January and February, but have fallen back to new cyclical lows in March and now April.
The median price held steady at $220,900, up 1.6 percent month-on-month and down 0.8 percent on the year. But swollen supply on the market, at 8.4 months vs. an already bloated 7.4 months in March, points to lower prices ahead. Prices for new homes fell sharply in April to a median $229,000.
One month's data are only one month's data but today's report will raise new concern over the housing market, a sector now getting hit by tightening lending standards. Treasuries firmed and the dollar eased in reaction to the data.
Existing home sales tanked in March, dropping 11.3 percent - the largest monthly drop since January 1989. The 6.120 million unit annualized pace was the lowest sales level since June 2003. Supply rose to 7.3 months from 6.8 months in February and 6.6 months in January.
Existing home sales Consensus Forecast for April 07: 6.20 million-unit rate
Range: 6.00 to 6.30 million-unit rate
![[Chart]](chart.gif)
|
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. |
| 2007 Release Schedule | ||||||||||||||||||||||||||
|
powered by
![[Econoday]](../../../../../../../../../images/logo.gif){kind=logo}