When something rises for 52 straight months, you may yourself have a trend there.
Average prices of US Existing Home Sales have done just that, rising year-over-year for the past 52 months, after June’s figures were reported.
It may not be a break-neck pace, but gradual growth in the housing market is supporting — or helping to cushion the blow of the deeper struggles — of many retail and service categories in local markets. ESA’s Jake Winchell spoke to this in ESA’s Top 5 Webinar on July 6.
The housing market rose 3% in June year-over-year, while average prices soared to a new peak.
June’s seasonally adjusted EHS (SAAR) pace hit 5.57M units, which was +1.1% higher than May 2016 (revised).
The housing market’s SAAR hasn’t been this high since since February 2007’s 5.79M unit pace.
Additionally, June finished with the highest average price per unit since the figure has been measured, as the market closes in on a $250K / unit average price threshold.
NAR chief economist Lawrence Yun — who commented on positives buffering the housing market, including stability in the jobs market and attractive mortgage rates — also cautioned about potential hazards ahead, namely tight housing inventory.
“Looking ahead, it’s unclear if this current sales pace can further accelerate as record high stock prices, near-record low mortgage rates and solid job gains face off against a dearth of homes available for sale and lofty home prices that keep advancing.”
Some quick facts about the US Housing Market for June 2016:
- SAAR: 5.57M units (+3.0% year-over-year)
- Median Pricing: $247,700 (+4.8% year-over-year)
- 52nd straight month of year-over-year price advance
- Inventory: 4.6 months (DOWN 5.8% from June 2015)
- 48% of EHS transactions were on the market <1 month (2nd highest-ever)
- First-time buyers: 33% (Up 3 pts. from May, highest since July 2012)
For more information on the US Housing Marketing visit Realtor.org’s Market Research Section.
Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition. He plays baseball, but isn't that Dave Eckstein.