Existing Home Sales Continue To Move Higher

Existing home sales continue to move higher, at a 5.490 million annual pace in August that beats Econoday's consensus range and edges out February as the best showing of the year and otherwise puts the rate back where it was early last year.

The median price, at $278,200, edged lower in the month but is still favorable compared to last August with a 4.7 percent rise. Supply, however, slipped in the month to 1.860 million units on the market and relative to sales is at 4.1 months which is down from 4.2 and 4.4 months in July and June. Less choices for buyers are a negative for sales.

Regional sales data show monthly gains in the Northeast, Midwest and also the South to offset a decline in the West. Over the last year, the South, which is by far the largest region in this report, has been showing the most strength followed by the Midwest, West, and then Northeast.

Home sales have been struggling to move higher in 2019 but move higher they have, though year-on-year improvement is still subdued at only 2.6 percent which, nevertheless, is the best showing over the last two years. Housing, unlike manufacturing, is not a concern for the Federal Reserve right now and favorable mortgage rates, averaging roughly 4.0 percent for 30-year conventional loans, should at least provide a floor the sector going into year end.