MNI DATA IMPACT: US Existing Home Sales Pace Picks Up in July

By Alexandra Kelley

     WASHINGTON (MNI) - The pace of existing home sales rose by 2.5% to a 5.42

million annual rate in July, the National Association of Realtors said

Wednesday, landing above the 5.40 million forecast by an MNI survey of analysts.

     NAR chief economist Lawrence Yun attributed the uptick to exceptionally low

mortgage rates and a healthy labor market, but warned that recession fears may

scare off potential buyers. 

     "Generally, low rates stimulate buying activity, the jobs market remains

strong, but there's increasing economic uncertainty. Given that home buying is a

major expenditure, people may be hesitant to buy homes if they believe we're

facing an economic recession," he told reporters. 

     The following are the other key points from Wednesday's release:

     -Year-over-year sales are up 0.6% after 17 months of decline.

     -Available homes for sale in July recorded 1.89 million, down 1.6% from

July 2018. A lack of inventory remains a constraint on the housing market. "The

No. 1 concern our realtor members have expressed is the lack of inventory,

particularly on moderately priced homes," Yun said. 

     -Sales by region show the West rising 8.3%, Midwest rising 1.6%, South

rising 1.8%, and Northeast falling 2.9%. Yun stated the sharp rebound seen in

the West home market could indicate that a more expensive home market is more

sensitive to mortgage rate changes.

     -The median sales price for July was $280,800, up 4.3% from a year ago and

outpacing wage growth and consumer price inflation, Yun said. He anticipates low

mortgage rates will help affordability issues.

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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