Momentum of Existing Home Sales declines in November 2014

National Association of Realtors (NAR) has released data pertaining to the housing market sales and supply. The annualized existing home sales (townhomes, co-ops, condominiums & single-family homes) has been revised downward to 4.93 million unit yearly rate in November 2014 from an estimate of 5.25 million in October 2014.

 

Notes:

National Association of Realtors, Existing Home Sales© [EXHOSLUSM495S], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/EXHOSLUSM495S/, December 30, 2014.

 

Lawrence Yun, NAR chief economist, says sales activity was choppy throughout the country in November and housing inventory began its seasonal decline. “Fewer people bought homes last month despite interest rates being at their lowest levels of the year,” he said. “The stock market swings in October may have impacted some consumers’ psyches and therefore led to fewer November closings. Furthermore, rising home values are causing more investors to retreat from the market.”

 

Median price for existing homes is now $205,300 , 5% more than November, 2013. According to statistics, this is the mark of 33rd successive month on the yearly price profits.

 

In November, 2014, the total housing inventory fell 6.7% with availability of 2.09 million existing homes sales. This decline translates to 5.1 month supply on the basis of existing sales and is also the same level as in the previous month of October 2014. Inspite of tightening housing market supply, the unsold inventory remained 2.0% above the corresponding number in 2013 when the availability of existing homes was 2.05 million for sale.

 

Notes:

National Association of Realtors, Existing Home Sales: Housing Inventory© [HOSINVUSM495N], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/HOSINVUSM495N/, December 30, 2014.

 

Notes:

National Association of Realtors, Existing Home Sales: Months Supply© [HOSSUPUSM673N], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/HOSSUPUSM673N/, December 30, 2014.

 

Yun goes on to say “Much faster price and rent appreciation – easily exceeding wage growth – will occur next year unless new construction picks up measurably.”Steep decline in annualized existing sales in November, 2014 have made the economists revise the 4th quarter GDP estimates by 1/10th percent point to nearly 2.6% annually.

 

From the above chart, it is clear that the existing home sales – months supply was more or less the same with a small dip in December, 2013 and January, 2014. At the end of November, 2014, it was the same as in November, 2013. Let take a look at the existing home sales – region wise status can make the thing clearer.

 

Existing home sales – West region graph shows that there has been a fall of 9.6% in annual rate to  1.03 million in November, 2014 and continued to be 1.0% lesser than the last year. In November, 2013, the median price range of existing homes in the West region was $292,700 and which is 3.5% above November 2013.

 

Notes:

National Association of Realtors, Existing Home Sales in West Census Region© [EXHOSLUSWTM495S], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/EXHOSLUSWTM495S/, December 30, 2014.

 

 

Existing home sales – South region dropped off by 3.2% to an annual rate of 2.09 million in November, 2014 and remained 5% more in comparison to that of November, 2013. The median price of the existing homes range was $176,500 in the South region, which was up by 5.2% compared to November 2013.

 

 

Notes:

National Association of Realtors, Existing Home Sales in South Census Region© [EXHOSLUSSOM495S], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/EXHOSLUSSOM495S/, December 30, 2014.

 

Existing home sales – Northeast region showed a decline of 4.2% to its annual rate to 680,000 but still continued to be 4.6% more than in November 2013. Median price in this area for was $246,100 and was 1.3% more than the previous year.

Notes:

National Association of Realtors, Existing Home Sales in Northeast Census Region© [EXHOSLUSNEM495S], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/EXHOSLUSNEM495S/, December 30, 2014.

 

Existing home sales – Midwest region depicted a fall of 8.9% to 1.13 million annual rates in November, 2014. It was 1.7% below the rate as in November, 2013. In this area, the median price range of existing homes was $160,500, which was again more than its previous year.

 

 

 

Notes:

 

National Association of Realtors, Existing Home Sales in Midwest Census Region© [EXHOSLUSMWM495N], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/EXHOSLUSMWM495N/, December 30, 2014.

 

The existing home sales are calculated generally one or two months later when the deal closes. Such re-sales have seen a bigger decline than the anticipated percentage in November, 2014 to 4.93 million annual pace. This is, in fact, the weakest reading since May, 2014 when annualized sales were expected to be 4.91 million.

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