Existing Homes Sales fell in June, Low supply of homes for sale, Federal Open Market Committee meeting this week
July 24, 2017
The National Association of REALTORS® (NAR) reported on Monday the Existing Home Sales in June fell 1.8% from May to an annual rate of 5.52 million units, below the 5.58 million expected. Sales are up 0.7% year over year, the second lowest of 2017. Within the numbers it showed that first-time buyers made up 32% of total sales in June, slightly lower than 33% both in May and a year ago.
The NAR said that the decline in sales is due in part to the ongoing theme … a low supply of homes for sale on the market.The NAR went on to say that total housing inventory is at a 4.3-month supply at the current sales pace and has fallen year-over-year for 25 consecutive months. Normal inventory levels are around 6%. The median existing-home price for all housing types in June was $263,800, up 6.5% from June 2016 ($247,600).
The Federal Open Market Committee meeting kicks off this week beginning on Tuesday and ends Wednesday at 2:00 p.m. ET with the release of the monetary policy statement. There is currently a near zero percent chance of a hike to the short-term Fed Funds Rate. Investors will be looking for clues as to when the Fed will begin to taper its massive $4.5 trillion balance, which consists of Mortgage Backed and Treasury securities.