Existing Home Sales

Previous: 4.3M

Forecast: 4.2M

Existing home sales measures the change in the annulized number of existing residential buildings that were sold. This is a key indicator of the strength of the housing market. Higher than expected existing home sales is bullish, while lower than expected existing home sales is bearish.

Existing-home sales in the United States dropped 2.2 percent from a month earlier to a seasonally adjusted annualized rate of 4.07 million units in July 2023, the lowest level since January and below market expectations of 4.15 million. Higher mortgage rates and limited inventory continued to be the main factors behind the decline. Sales of single-family homes decreased by 1.9 percent to 3.65 million, and sales of condominiums and co-ops sunk 4.5 percent to 0.42 million. Sales weakened in the Northeast, Midwest, and South, but grew in the West. Year-over-year, sales slumped 16.6 percent. Simultaneously, the inventory of unsold existing homes increased 3.7 percent from the previous month to 1.11 million at the end of July, or the equivalent of 3.3 months’ supply at the current monthly sales pace. On the cost front, the median existing-home sales price rose 1.9 percent from one year ago to $406,700, the fourth time it has topped $400,000. source: National Association of Realtors