- Prior was 3.99m
For background, the National Association of Realtors publishes its existing home sales report monthly at 10 am ET, usually in the third or fourth week of the following month. Existing homes make up roughly 90% of US home sales, so the report is the broadest monthly read on housing market activity.
The headline figure is the seasonally adjusted annualized rate of sales, covering single-family homes, townhomes, condominiums and co-ops. Because the data count closed transactions, they reflect contracts signed one to two months earlier. NAR’s pending home sales index, released later each month, tracks contract signings and gives an earlier signal of where closings are headed.
The report also includes the median existing-home price, which isn’t seasonally adjusted and is usually compared with the same month a year earlier. Because it’s a median, it can be skewed by changes in the mix of homes selling, such as more high-end sales in a given month. Repeat-sales measures like Case-Shiller give a cleaner read on price trends.
Inventory is one of the most closely watched details. NAR reports the number of homes for sale and months’ supply, the time it would take to sell current inventory at the current sales pace. Around six months is generally considered a balanced market. The report also tracks first-time buyers’ share of sales, all-cash purchases, investor activity and days on market.
Existing home sales rarely move broader markets. Their value is in showing how mortgage rates and affordability are affecting housing turnover. Sales have been held down in recent years by the lock-in effect, with homeowners reluctant to give up low-rate mortgages, which has kept inventory tight and prices elevated despite weak volumes.
This article was written by Adam Button at investinglive.com.