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US existing home sales for June were 4.72M v. 4.75M estimate. However the highlight was condominium sales soared by 29.4%, Hhousing inventory -18.2% from a year ago with huge jumps in the South and West

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That was the largest increase in existing home sales since the series began in 1968 as mortgage rates remained at record low levels and as the economy reopened from coronavirus-induced restrictions.

The move suggests stabilization after last month's losses.

June US Existing Home Sales

  • US existing home sales for June 4.72M vs. 4.75M estimate vs 3.91M
  • existing home sales -11.3% vs. a year ago
  • housing inventory -18.2% vs. a year ago
  • 4 month supply of existing homes in June
  • month-to-month gain rises by 20.7%
  • single-family homes jumped 19.9%
  • condominium sales soared by 29.4%.
  • Condos are about 9% of all sales
  •  Houses remain on the market for 24 days down from 27 days last year
  • 62% of the homes sold in June were on the market for less than a month
  • Median home price increase 3.5% to a record $295,300
  • West sales jumped 31.9%
  • South sales jumped 26%
  • Midwest sales rose 11.1%
  • Northeast sales increase by 4.3%

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Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales which will be released Friday the remaining 10% and are based on contract signings.

New home sales are expected to rise to an annualized sales pace of 700K from 676K last month. Although the gain was strong off of the depressed level from May, the level remains below the low from 2019 at 4.98M. That may be as a result of declining inventories due to uncertainty from the coronavirus.

The big question is after the lockdown eases and the economy reopens how much damage has been done with the massive unemployment and wealth erosion.

Source:

From The TradersCommunity News Desk

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