Existing Home Sales: Continued Slide But Hints of Bottoming

Bottom Line: Existing home sales slid mostly as expected in April, with slight negative revisions to prior data. Inventories rose slightly but remained historically very low at just 2.90 months of supply (sales/inventories), above the average of the last three months, in line with the six-month average but still below the one-year average. While year-on-year readings in home price changes continued to show more negative readings because of base effects, average and median home prices were sharply higher in April. Overall, housing remains in the process of bottoming, especially for new homes. But expect existing home sales to take longer to bottom as existing homeowners enjoy mortgage rates that are nearly half the prevailing current rate and have little incentive to move.

Existing Home Sales FELL -0.15 million annualized units to 4.28, BELOW the 3-Month average of 4.42, ABOVE the 6-Month average of 4.24 and -1.29 BELOW the year-ago level. 

Single-family sales FELL -0.14 million annualized units to 3.85, BELOW the 3-Month average of 3.98, ABOVE the 6-Month average of 3.8 and -1.11 BELOW the year-ago level. Median prices nationwide ROSE 13.4k dollars to 388.8, ABOVE the 3-Month average of 375.93, ABOVE the 6-Month average of 371.37 but -6.7 BELOW the year-ago level.

Inventory ROSE 0.07 million units to 1.04, ABOVE the 3-Month average of 0.99, ABOVE the 6-Month average of 1.01, nearly in line with the year-ago level of 1.03. Months supply ROSE 0.3 months to 2.9, ABOVE the 3-Month average of 2.7, ABOVE the 6-Month average of 2.87, and 0.7 ABOVE the year-ago level.