WASHINGTON (8/21/15)--Existing-home sales continue to rise, with sales climbing 2% to 5.59 million annualized units in July, according to the National Association of Realtors (Economy.com Aug. 20).
On a year-over-year basis in July, sales jumped 10.3% during the month.
“Despite this month’s hiccup in condo and co-op sales, the July home sales numbers were very much what the housing market needs: an increase in sales, median prices, and a downward move in the inventory-to-sales ratio that will prompt increased residential construction if sustained through the end of the year,” said Andres Carbacho-Burgos, Moody’s analyst (Economy.com).
Single-family homes fueled the gains, coming in at 4.96 million annualized units for the month, a 2.7% monthly increase. Condo and co-op sales, however, dropped to 0.63 million, or a 3.1% step back month-over-month.
Regionally, the South and West posted the strongest improvements during the month, increasing by 4.1% in the South and 3.2% in the West. Both regions recorded more than 10% year-over-year increases as well.
In the Midwest, sales came in flat in July, while the Northeast recorded a 2.8% step back.
As for sales prices, the nonseasonally adjusted median sales price for a single-family home for the month was $235,000, a 5.8% annual increase. For condos and co-ops, the median sales prices was $221,800, or a 3.2% annual increase.
“The upward trend in existing-home sales will soon transmit to new-home sales, which will help sustain homebuilder confidence, which is already at a post-recession high as measured by the (National Association of Home Builders) housing market index,” Carbacho-Burgos said.
The Moody’s analyst added that an acceleration in median sales price growth for single-family homes also indicates a strengthening economy.