U.S. existing-home sales unexpectedly increase in July

The National Association of Realtors (NAR) announced on Monday that the U.S. existing home sales rose 2.0 percent m-o-m to a seasonally adjusted rate of 5.99 million in July from a revised 5.87 million in June (originally 5.86 million). This was the highest reading since March.

Economists had forecast home resales dropping to a 5.83 million-unit pace last month.

In y-o-y terms, existing-home sales rose 1.5 percent in July.

According to the report, three of the four major regions recorded m-o-m gains in existing-home sales in July and only two registered advances in y-o-y terms. The median existing-home price for all housing types in July was $359,900, up 17.8 percent y-o-y. This marked 113 straight months of y-o-y gains.

Single-family home sales stood at a seasonally-adjusted annual rate of 5.28 million in July, being up 2.7 percent m-o-m but down 0.8 percent from one year ago. The median existing single-family home price was $367,000 in July, up 18.6 percent from July 2020. Meanwhile, existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 710,000 units in July, down from 730,000 in June but up 22.4 percent from one year ago. The median existing condo price was $307,100 in July, an annual advance of 14.1 percent.

"We see inventory beginning to tick up, which will lessen the intensity of multiple offers," noted Lawrence Yun, NAR's chief economist. "Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available."