Existing Home Sales

Existing home sales declined for a third straight month in July, plunging 27.2% to a 3.83 million unit annualized pace from a 5.37 million unit pace in June.  Economists had expected a decline of 15.5% to 4.65 million annualized units.  Purchases of existing homes fell 27% compared to a year earlier, while the median price of existing home sales grew 0.7% from a year earlier.  The supply of existing homes for sale grew 2.5% in July to 3.98 million.  At the current sales pace, the inventory level represented 12.5 months’ worth - the highest since 1999.  Declines in sales were seen in all four regions of the U.S.

Summary: Existing home sales plummeted in July, with the pace of sales marking the slowest rate since comparable records began in 1999.  Without government incentives, we could see a “double-dip” in the housing market.

» More Economic Indicators