Existing Home Sales Soar To 10-Year Highs

Tyler Durden's picture

Following February's 3.9% drop, March existing home sales roared back (up 4.4% MoM - the fastest growth since Dec 2015) to the highest since Feb 2007 at 5.71 million SAAR. Inventories tumbled (for the 22nd month in a row) and prices rose (for the 61st month in a row) as affordability issues remain ignored (for now).

It seems, unlike 2013, that rising rates are not affecting demand for existing homes at all... (yet)

The Details

  • March sales rose in three of four regions, including a 3.4 percent increase in the South and a 1.6 percent drop in the West
  • At the current pace, it would take 3.8 months to sell the homes on the market, unchanged from February; Realtors group considers less than a five months’ supply as consistent with a tight market
  • Single-family home sales increased 4.3 percent last month to an annual rate of 5.08 million
  • Purchases of condominium and co-op units rose 5 percent to a 630,000 pace
  • First-time buyers accounted for 32 percent of all sales in March, unchanged from February
  • Homes sold in 34 days, compared with 45 days in February and 47 days in March 2016

The median existing-home price for all housing types in March was $236,400, up 6.8 percent from March 2016 ($221,400). March's price increase marks the 61st consecutive month of year-over-year gains.

 

With the high-end dominating the price appreciation...


Inventory of available properties fell 6.6 percent from March 2016 to 1.83 million, marking the 22nd straight year-over-year decline.

“This is a very broad-based recovery” in the housing market, Lawrence Yun, NAR’s chief economist, said at a press briefing accompanying the report.

 

“Both sales as well as prices are running very solidly,” and “buyers are not being deterred by these affordability challenges.”

 

Policy changes could “quickly change” the direction of housing in the second half, he said.

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Dg4884's picture

Banks have to do something with all that tax free money from the Fed.  All bullshit. 

GUS100CORRINA's picture

Does anyone believe this published data?

The deep state working hard to shape a NARATIVE of EUPHORIC PROSPERITY.

yrad's picture

What fucking rising rates? You mean 3.75 to 3.875 on the 30 year fixed since 2012? Bullshit.

Blano's picture

That's what I was wondering. A quarter or a third of a fucking percent????

TLT is on the upswing again, not exactly a sign of rising rates.

adr's picture

SAAR

The original fake news.

Just like ten years ago, everyone is a house flipper now. I guess everyone will be able to afford million dollar homes in the ghetto. Every city will be like Vancouver and Toronto. Bid it all up, so everyone gets rich.

90% of homes in America are overvalued and the true value is anywhere from 50-90% off the asking price.

alangreedspank's picture

We'll see when all the boomers try to offload their McMansion to college indebted millenials. I don't think they'll get what they expect...

CJgipper's picture

They're not going to do that.  Boomers are the live forever generation.  They'll stay in those McMansions living off the SS and medicare until the place falls down around them.  They'll leave nothing but a mess for their millenial kids.  It's the boomer way.

Falling Down's picture

+1

 

The house fliping horeshit has to stop, it was bad enough, back then. I hear about these auctions around town (Fort Wayne), and just shake my head. Some of the houses up for auction are absolute toilets, and you know the flipper is gonna put the minimum amount of $$$ and effort into the property. Very few flippers I've come across do it right.

corporatewhore's picture

But if you attend those seminars advertised on radio and tv and seating is LIMITED!!!! (act now, LOL) you can be a multi-millionaire learning secret formulas on how to use other people's money and get rich quick!

sunkeye's picture

@corpwhore - I wanna compliment your comment - for the LOL - but no time! I'm out the door on my way to the seminar!

Bay of Pigs's picture

Lawrence Yun? Oh THAT guy. Chief Bullshitter for the NAR.

Recovery? No. FED induced asset inflation. Not real growth.

youarelost's picture

Will they restate this lower again in 5 years from now to help re-elect a marxist like they did in Oct 2011?

 

What a bunch of liars.

chubbar's picture

We just saw something like a 23% year over year decline in mortgage originations in a previous ZH article, either cash purchases are WAY up or one of those articles is bullshit. I'm guessing this one.

Blano's picture

My daughter works at Quicken Loans and says they're still restricted to 40 hour weeks, so business isn't exactly booming there unless it has just changed.

orangegeek's picture

Asians and central banksters bidding up the market for the purpose of genocide.

 

Pray for Trump folks, because after Trump, there is nothing else except those that make hitler look like a choirboy.

khnum's picture

Now lets have a second set of numbers WITHOUT overseas Chinese investors.

Rich Monk's picture

10,000 retail stores closing in America in 2017. Sure, all is well!

corporatewhore's picture

If true then lemmings are jumping off the cliff.

I look at the local RE market and the psf is at or above 07/08 insanity.  All price ranges.

I am looking but may have to move to a 40 minute drive away in order to meet budget.

Personally think a crash is going to occur but as a mortgage lender told me--"what makes you an expert?"

Bemused Observer's picture

Oh enough with these stupid month-to-month statistics already! One month doesn't tell you anything, you need several in a row to establish a 'trend'. Every market will have up and down months...people always need a place to live, and many will prefer to buy rather than rent. At some times, there will be a bump up, or dowm, from prior levels, due to natural ebb/flow of markets, and market conditions.

 

It's like all the cheering that goes on when there is a one-time uptick in car sales...do they really believe it is the beginning of a car-buying boom? No morons...it was just a bunch of people who had to replace their vehicles, and if you go back, you'll likely see that there was a cooresponding 'bump' up in sales around the time they bought those vehicles...now they all have a lot of miles on 'em, and need replacing. 

 

There will be plenty of 'up' months for real estate...Boomers downsizing, and buying new places, millennials finally getting with the program and starting families, some unexpected incentives, etc. None of which constitutes a housing recovery. Show me a solid 3-4 month sales record, heading steady upward with cooresponding wage increases, then we'll talk about a recovery.

 

Until then, stuff those charts.

L Bean's picture

The slight boom in the MICvilles skews everything, Bigly. Most of the US is like The Walking Dead.

moorewasthebestbond's picture

That won't stop the NAR from hoisting it up as a Main Street renaissance.

kentek's picture

Besides, In california there is nothing to buy.  All old Taco Bell housing from the 70's for $700-$800k.  Discraceful...

BTW: From the Mississippi River West 50% of all building sites aka-LAND, are owned (controlled) by the State or the Feds. (Except Texas). Couple this with insane building codes and you will never be able to house anyone for under $500K.

 

Houses Depreciate's picture

Nothing to buy? Why would you want to?

 

Rent for half the monthly cost. Buy later after prices crater for 65% less.

moorewasthebestbond's picture

More housing noise.

 

The NAR must be doing cartwheels... for now.

brushhog's picture

I dont know if my house has appreciated much since I bought it 8 years ago, but the timber on the property sure has. I got an estimate from a local logger that was a pleasant surprise last week, and I can expect that every 15 years if I choose to cut. Basically covers all of my property taxes forever.

Houses Depreciate's picture

Houses depreciate. Including your shanty. 

Ink Pusher's picture

.5% gain on the month eh?

That'll take it to 5% or 6 % for the year.

Is the overvaluation bubble not big enough yet?

Houses Depreciate's picture

Take a look at NARs methodology before believing their "data".

The reality is housing demand is at 20 year lows and falling.