Existing home sales, after stuttering in April 2017, rose 2.7 percent in May 2017 versus a year ago to 5.62 million based on a Seasonally Adjusted Annualized Rate (SAAR) according to the National Association of Realtors® (NAR). The raw home sales number for May 2017, not seasonally adjusted, was up 2.7 percent to 555,000 with the year-to-date sales number up 2.9 percent at 2.091 million transactions.
Median price for the month rose 5.8 from a year ago to $252,800 making 63 consecutive months of a year-over-year increase.
The first graph shows the monthly median price and the total number of home sales in the prior 12 months commencing January 2014. Total housing sales (raw monthly data – not seasonally adjusted) for the 12-month period ending May 2017 of 5.511 million was up 2.8 percent versus the 12-months ending May 2016.
The next graph shows the monthly raw data (not seasonally adjusted) for each month commencing January 2014. Following that is the same time periods but for median price.
Other metrics and insights from the NAR release included:
- The number of available listings as of May 2017 of 1.96 million was down 8.4 percent from a year ago resulting in just 4.2 months of inventory with 6 months considered normal
- Listings were on the market a median 27 days in May 2017, the fewest reported since 2011 when NAR commenced collecting this metric
- Non-distressed properties were on the market a median 27 days, with 55 percent on the market less than one-month (also a new record high)
- Short sales were on the market 94 days in May and foreclosures 48 days
- Just 5 percent of all sales in May 2017 were distressed sales, down from 6 percent a year ago.
- Shorts sales made up just one-out-of-every 100 transactions and foreclosures four-out-of-every 100
- Short sales sold at an average 16 percent when compared to non-distressed transactions while foreclosures sold at a 20 percent discount
- Investors acquired 16 percent of all closings in May 2017 (versus 13 percent a year ago), with investors paying all-cash 64 percent of the time
- Overall, one-out-of-every five transactions (22 percent) were all-cash deals and had no loans attached at closing
- First-time homebuyers made up one-out-of-every three transactions (33 percent) compared to 30 percent a year ago, no doubt driven by Millennials entering the marketplace
To read the entire May 2017 Existing Home Sales Release from NAR and also access the underlying data click https://www.nar.realtor/news-releases/2017/06/existing-home-sales-rise-11-percent-in-may-median-sales-price-ascends-to-new-high
The story for existing home sales continues to be a market where demand is growing and outstripping supply, limited inventory of listings and continued price increases. Great news for home sellers but challenging for prospective buyers.
Ted