Housing data released on Monday in the United States came in above expectations with Existing Home sales rising modestly in July by 2%. According to analysts at Wells Fargo, the housing market appears to be moving back toward some semblance of balance this summer. The point out higher prices have brought out more sellers.
Key Quotes:
“Existing home sales rose modestly in July, as more homes have come on the market and fewer homes are selling above their asking price. To be certain, this is still a seller's market. Homes are selling quickly and often with few contingencies. Sales rose 2% to a 5.99 million-unit pace in July, which is the second consecutive monthly gain.”
“Single-family homes accounted for all of the increase, with sales climbing 2.7% to a 5.28 million-unit pace, which is the highest since March. Sales of condos and co-ops fell 2.7% to a 710,000-unit pace, which is in line with the average over the past six months.”
“July's rise in existing home sales topped expectations because mortgage applications have been stagnant recently and pending home sales declined in June, after spiking higher the prior month. One reason for the disconnect is the rising share of cash buyers. Cash sales accounted for 23% of closings in July, which was unchanged from June but up from 16% one year ago.”
“Home price appreciation has moderated as more homes have come on the market. The median price of an existing home fell 0.8% in July to $359,900, on a non-seasonally adjusted basis. Prices remain 17.8% higher on a year-over-year basis, which is down from a peak of 23.6% in May. The average price of an existing home is up notably less, 13% year-over-year.”
