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US existing home sales tumbled to 5.19M v 5.35M expected and the prior 5.21M, down -0.4% v +2.7% expected. Mortgage data has been volatile but stronger in 2019 so perhaps housing numbers pick up in the coming months if the geopolitical temperature cools.

US Existing Home Sales Supply April 2019

US Existing Home Sales for April 2019

  • US existing home sales  5.19M vs 5.35M estimate, 5.21M in March
  • MoM fell -0.4% v +2.7% estimate
  • Inventory of homes for sale 1.83M equivelnet to 4.2 months supply at current sales pace
  • Inventory up from 3.8 months last month and 3.6 months from February,  to the highest level since October 2018 (4.3 months).
  • Median home price $267,300, +3.6% from April 2018. Up from $259,700 last month
  • Average price $305,200, +2.5% v April 2018. Up from $297,500 last month
  • 3% of US April existing home sales were distressed v the same 3% in March and 4% in April 2018
  • First-time buyers 32% versus 33% last month
  • All cash 20% versus 21% last month

Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the 0.4% dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”

 

Yun says that college student debt continues to hinder millennial homebuyers.

US Consumer Debt

 

“Given the record high job openings in the construction sector, some may want to take a gap year to work there and save, and thereby lessen the student debt burden.”

US Existing Home Sales Region April 2019

Regional Breakdown

April existing-home sales numbers in the Northeast decreased 4.5% to an annual rate of 640,000, 4.5% below a year ago. The median price in the Northeast was $277,700, up 0.9% from April 2018.

In the Midwest, existing-home sales saw relatively no percentage change from the month prior, as the annual rate remained 1.17 million, which is 7.9% below April 2018 levels. The median price in the Midwest was $210,500, an increase of 5.5% from a year ago.

Existing-home sales in the South modestly dropped 0.4% to an annual rate of 2.27 million in April, down 1.7% from a year ago. The median price in the South was $236,800, up 4.4% from a year ago.

Existing-home sales in the West grew 1.8% to an annual rate of 1.11 million in April, 5.9% below a year ago. The median price in the West was $395,100, up 1.3% from April 2018.

Source: NAR

From The TradersCommunity News Desk

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