7/24/2015
By Dominique Paul, Research Analyst

The National Association of Realtors released its monthly existing-home sales report for the month of June. During the month, sales increased by 3.2% to a seasonally adjusted annual rate (SAAR) or 5.49 million. The May existing-home sales SAAR was a downwardly revised 5.32 million (from 5.35 million). June marks the highest annual pace in eight years, specifically since February 2007. The Midwest saw the largest increase (+4.7) in existing-home sales to 1.33 million. In the region, the median price rose by 7.2% to $190,000. Consumers have become more interested in the purchase of condominiums and co-ops. Existing-home sales for the category surged 6.6% to an SAAR of 650,000 units. This is a good sign for the housing market as home-owners seeing prices rise should be able to put more money down on a brand new home.

The Federal Housing Finance Agency (FHFA) reiterated improving home prices. For the month of May, the agency’s housing price index (HPI) rose by 0.4% month-over-month, which was in-line with consensus. April’s figures were revised higher, as prices rose 0.4% versus an earlier estimate of 0.3%.  Year-over-year, housing prices actually increased by a whopping 5.7% following an increase of 5.3% in April. 5.7% is actually the best growth rate since April 2014. The Northeast saw the greatest gain in prices, +1.1% month-over-month. The rising home prices are encouraging and we’re looking for a stronger housing market for the rest of the summer.  

Dominique Paul
Wall Street Strategies

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