MNI DATA IMPACT: US June Existing Home Sales Fall To 5.27M

By Kevin Kastner, Brooke Migdon, and Alexandra Kelley

     WASHINGTON (MNI) - The pace of existing home sales fell by 1.7% to a 5.27

million annual rate in June, landing below the 5.33 million rate expected by the

Bloomberg consensus and the 5.34 million forecast by an MNI survey of analysts. 

     The following are the other key points from the June existing home sales

data released Tuesday by the National Association of Realtors:

     - May home sales were revised up to a 5.36 million pace from the 5.34

million rate previously reported.

     - The second quarter average sales pace, at 5.28 million, stands above the

5.21 million average for the first quarter after revisions are included.

     - June resales in Northeast +1.5%, Midwest +1.6%, South -3.4%, and West

-3.5%.

     - June home supply +1.0% to 1.93m, but still unchanged year/year, allowing

the months supply to rise to 4.4 months from 4.3 months in May and 4.3 months a

year ago.

     - National median sales price +4.3% y/y to a record high of $285,700 in

June, but was down 6% after adjusting for inflation.

     - NAR's Chief Economist Lawrence Yun said the decline in home sales was

"frustrating" given the current strength of the stock market coupled with high

wage growth and job creation. 

     -"It does not make economic sense," Yun told reporters. 

     - Yun attributed this month's decline in sales and a further gain in prices

to a shortage in inventory, noting that after slowing last month, the current

month saw no gains in the inventory of existing homes. 

     - Yun said that an increase in inventory will lend itself to a rise in

sales, predicting that buyers, particularly on the low-end of the price scale,

would be inclined to "take advantage" of low mortgage rates. 

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

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