Economic Snapshot: Existing home sales reach eight-year high

It’s hard not to be optimistic about the housing market this week, as we take a look at pre-recession levels of existing home sales and double-digit year-over-year growth for housing starts.

Existing home sales

Existing home sales increased 3.2 percent to a seasonally adjusted annual rate of 5.49 million in June. Sales are now at their highest pace since February 2007, have increased year-over-year for nine consecutive months and are 9.6 percent above June 2014.

The median existing-home price for all housing types was $236,000 in June, which is 6.5 percent above the previous year and surpasses the median sales price set in July 2006, which was $230,400.

Total housing inventory rose 0.9 percent to 2.3 million existing homes available for sale at the end of June, now 0.4 percent higher than June 2014. Unsold inventory is at a supply of 5.0 months at the current sales pace, down from 5.1 months in May.

The percent share of first-time homebuyers fell from 32 percent in May to 30 percent in June but is still higher than 28 percent in the previous year.

Distressed sales fell from 10 percent in May to 8 percent in June and are below the 11 percent share from June 2014. Six percent of June sales were foreclosures and 2 percent were short sales.

Housing starts

Privately owned housing starts in June were at a seasonally adjusted annual rate of 1,174,000. This is 9.8 percent above the revised May estimate of 1,069,000 and 26.6 percent above the June 2014 rate of 927,000.

Single-family housing starts in June were at a rate of 685,000, 0.9 percent below the revised May figure of 691,000.

Privately owned housing completions in June were at a seasonally-adjusted annual rate of 972,000, 6.7 percent below the revised May estimate of 1,042,000 but 22.0 percent above the June 2014 rate of 797,000.

Single-family housing completions in June were at a rate of 647,000. This is 0.3 percent below the revised May rate of 649,000.