Existing Home Sales Suffer Worst Losing Streak Since 2014, Price Hits Record High

Following last month's disappointing starts/permits data and home sales prints, hope was high for a June rebound but they are gravely disappointed. Existing home sales tumbled 0.6% MoM (vs expectations of a 0.2% rise) and even worse, it's off a downwardly revised May print of 0.7% MoM, with median home price hitting a record high $276k.

This is the first 3-in-a-row decline for existing home sales since Jan 2014...

Existing Home Sales SAAR is almost at its weakest since Jan 2016...

Lawrence Yun, NAR chief economist, says closings inched backwards in June and fell on an annual basis for the fourth straight month.

“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” he said.

“The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

The median existing-home price for all housing types in June was $276,900, surpassing last month as the new all-time high and up 5.2% from June 2017 ($263,300). June’s price increase marks the 76th straight month of year-over-year gains.

Homebuilder stocks have generally drifted lower with the dismal data but have yet to take the next leg lower...

 

 

 

 

 

Comments

Nature_Boy_Wooooo UmbilicalMosqu… Mon, 07/23/2018 - 11:00 Permalink

Hurry......this is your last chance to buy the top.

 

The suggestion that the down turn in sales is due to high demand driving prices up is comical. We currently live in a country that has experienced massive population growth over the last decade, a country that is overwhelmingly voting in favor of decreasing immigration. If prices are down during high demand.....just wait until the immigrants looking to buy homes disappear.

In reply to by UmbilicalMosqu…

Whoa Dammit toady Mon, 07/23/2018 - 11:26 Permalink

One of the problems with existing homes is people who watch HGTV and DIY and think they can do things to "improve" their house that they really shouldn't. They just make a big mess that someone else has to fix properly. 

In reply to by toady

rf80412 Whoa Dammit Mon, 07/23/2018 - 11:59 Permalink

There's no point in making your house worth more than the comps can justify, and ironically, "superficial" things like veneers, updated cabinets, and stylin' light fixtures can be the most expensive way to try to add value to your house.

"Improve" your house to make it suit you better, but don't expect to make that money back and then some.

In reply to by Whoa Dammit

pickatheweek PitBullsRule Mon, 07/23/2018 - 10:23 Permalink

Still crying that your candidate lost?  Get used to it and look in the mirror-you'll see who's the asshole.

 

BTW, go back to CNN.com-you're comments will get eaten alive here libtard!

 

You probably live in a cramped shit city apartment building with your pit bull right?Terrorizing the neighbors and children with your dog?

Yeah, unfortunately I know the type.

In reply to by PitBullsRule

FireBrander pickatheweek Mon, 07/23/2018 - 10:27 Permalink

No new homes around here selling for less than $250k; builders are wanting to sell at $275k to $400k.

Out joy riding last night through new developments; lots of standing houses with "For Sale" signs on them and weeds 3' high in the front yards. I could only find 5 houses that were in the process of being built...lots of empty lots with "For Sale" signs on them.

locally, new stuff is being sold, but it's not flying off the shelves. Existing homes under $200k, that's the market; they have to be a real dog to go past 30 days without a buyer.

In reply to by pickatheweek

snblitz FireBrander Mon, 07/23/2018 - 14:02 Permalink

I live near a very expensive area of silicon valley.  My mom and mother-in-law both live in the expensive area through they bought in the 1960s before the area boomed in value.

Two of the houses on my mother-in-law's street have front yards that have been abandoned with weeds 3 feet tall.  Everything else is picture perfect.

If someone offers a house (these are 2000 sq ft homes) for sale, it will sell for 10% over asking and be sold before it is listed.  The last couple of houses that sold on my Mom's street, over a year ago, were $1.5 million plus for 1/4 acre with 2000 sq ft house.

Just this past week dozens of homes have come on the market all over.

However, prior to this week, there are been close to zero homes for sale.

In reply to by FireBrander

Superlat PitBullsRule Mon, 07/23/2018 - 10:24 Permalink

Inventory is exploding in Seattle, the bubbliest market lately. Lots of price cuts, granted from very lofty prices, but it's been quite notable, only the last 2 weeks or so. Houses still selling, for now, but some are starting to sit a while.

I love the smell of house-seller concern in the morning. And I hate Redfin. God, do I ever want to see that company lay a coal turd. Them and their 'market estimate' of a home's 'value' (that they benefit from). SHORT REDFIN! They are going to get killed. Shouldn't that be illegal for them to appraise as well as sell?

See, righties, its called REGULATION! But yeah, Clinton and Rubin sold out as well. It's an American thing.

In reply to by PitBullsRule

boostedhorse Mon, 07/23/2018 - 10:14 Permalink

Time to buy GLD calls soon IMO, its clear US will tariff all chinese goods soon resulting in inflation, FED will be either forced to hike quicker, in which case Trump will replace FED chair with someone who won't raise rates, resulting in mega big into gold. Or FED will let inflation rise as it pleases, which will result in the same outcome for gold.

It's obvious the tariffs are the end goal as zero tariffs on both sides would worsen the situation for US even more.

Should make for some amazing gains if this happens.

Anyone have any thoughts on how mid-terms could affect gold prices for whichever result in the elections?

Superlat boostedhorse Mon, 07/23/2018 - 10:34 Permalink

Gold will be flat and retain value while everything else dives this year. The problem will dollar collapse is there is no viable alternative, and there is so much air money (stocks, art, collectibles, real estate) that that takes the hit before the cash.

Maybe after that, the cash takes the hit, but maybe internationally more than at home. We do produce our own food at least. China's going to have their first great depression, with 1.3 billion angry people. That should get interesting. Then when they no longer support our debt, I predict massive defaults on obligations before destruction of the dollar. The Soviet Union threw all their pensioners into the street. We could too, in a less obvious way.

In reply to by boostedhorse

MuffDiver69 Mon, 07/23/2018 - 10:25 Permalink

In these parts people are asking too much for homes that would normally sell quickly. I see it over and over. Probably won’t see some real movement til the new tax laws come into play...

More_sellers_t… Mon, 07/23/2018 - 10:29 Permalink

Prices have risen 30 percent in 6 months in some hot markets.  Crazy . No one is paying these prices unless they unloaded a turd a a crazy price. No spec money here, unless its big money other peoples money spec.  Lets crank up interbank rates to a more normal 5 percent range and see where these prices go.  Screw the 20 trillion we owe, it aint getting paid anyway

hanekhw Mon, 07/23/2018 - 10:39 Permalink

Attributable to a dwindling population......of Nigerian Princes, Russian and Chinese Oligarchs, Rappers, Actors, Actresses and recently divorced trophy wives.......

3-fingered_chemist Mon, 07/23/2018 - 10:41 Permalink

The only reason why the housing market has gotten out of control (again) is because of foreign buyers parking cash overseas in US real estate. The buyer of last resort last time was subprime US citizens. The buyer of last resort here is foreigners trying to hide money from their home regimes. Why else would some 800 sq. foot dump in places in Vancouver, SF, Seattle, etc. go for 1.25 million? And people wonder why homelessness in these places is through the roof. Question is who is left to buy for the next bubble creation in real estate when this one pops? I'm not sure there is anyone left to play hot potato for state and local government pension workers.