Economist's Insights

Existing Home Sales Rebound as Buyers Hasten the Decision-Making Process

Jun 21, 2017

The housing data finally received some positive news with May’s existing home sales unexpectedly rebounding to their third best pace of the current cycle. Sales rose 1.1%, compared with estimates for a 0.4% decline, to an annualized pace of 5.62MM units. Activity improved in three of four regions; sales in the Midwest declined 5.9%. Despite the uptick in the pace of activity, inventory pressure eased slightly with months’ supply rising 0.1 to 4.2 months. Despite the MoM increase in homes available for sale, low supply remains a relevant story. On a YoY basis, inventory levels fell for a 24th consecutive month. On the pricing front, the median price of a home sold rose to a record high – prices are not adjusted for changes in the sales mix. Despite persistent low supply and continued price increases, demand remains steady; the median home sold in just 27 days, the fastest since the NAR began tracking the metric in 2011.