This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Existing Home Sales Drop but Price Rise Continues

NEW YORK ( TheStreet) -- Existing home sales unexpectedly fell in June from the previous month, though levels are still higher than a year ago and prices continued to climb.

According to the National Association of Realtors, existing home sales dipped 1.2% to a seasonally adjusted annual rate of 5.08 million, down from a downwardly revised 5.14 million in May. Still, were 15.2% higher than a year earlier.

Economists polled by Bloomberg expected existing home sales to rise to an annual sales rate of 5.27 million from the original estimate of 5.18 million sales rate reported for May.

Existing home sales are completed transactions that include single-family homes, townhomes, condominiums and co-ops, based on transaction closings from Multiple Listing Services (MLS). Existing home sales account for more than 90% of the total home sales in the economy.

Single-family home sales slipped 1.1 percent to a seasonally adjusted annual rate of 4.50 million in June from 4.55 million in May, but were 14.5 percent above the 3.93 million-unit pace in June 2012.

The dip in sales coincided with a sharp rise in mortgage rates. According to Freddie Mac, the 30-year, conventional, fixed-rate mortgage rose to 4.07 percent in June from 3.54% in May, the highest level since October 2011 when it was also 4.07 percent. The 30-year conventional fixed-rate was 3.68% in June 2012.

Still, the national median existing- home price was $214,200 in June, up 13.5% from a year earlier, marking the 16th consecutive month of year-over-year price increases. The median existing single-family home price was $214,700 in June, which is 13.2% above a year ago.

Inventory rose 1.9% to 2.19 million units, representing 5.2 months' supply of existing homes at the current sales pace.

The supply-demand balance is still tilted in favor of the seller, with listed inventory still 7.6% below a year ago. "Inventory conditions will continue to broadly favor sellers and contribute to above-normal price growth," NAR's chief economist Lawrence Yun said in a statement.

The median time on market for all homes was 37 days in June, down from 41 days in May. During June 47% of all home sales were on the market for less than a month.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
XHB $37.67 0.99%
IYR $74.98 0.85%
AAPL $121.26 -0.91%
FB $94.90 -0.33%
GOOG $628.65 -0.62%

Markets

Chart of I:DJI
DOW 17,719.66 -26.32 -0.15%
S&P 500 2,107.18 -1.45 -0.07%
NASDAQ 5,136.3460 +7.5610 0.15%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs