The US Census Bureau and Department of Housing and Urban Development in a joint release Wednesday reported that newly constructed single family homes sold at a seasonally adjusted annual pace of 592 thousand in June and revised May sales up to 572 thousand.
According to the National Association of Realtors’ Pending Home Sales Index Thursday, nationwide signed contracts for existing homes inched up 0.2 per cent over the month of June 2016.
US Pending Home Sales: June 2016
According to the National Association of Realtors’ Pending Home Sales Index (PHSI) released Wednesday, nationwide signed contracts for existing homes inched up 0.2 per cent over the month of June 2016. The PHSI is forward looking indicator for contracting closings (i.e. existing home sales). June marks the fourth monthly increase in the PHSI over the past five months. Over the year, the PHSI rose by 1 per cent. With this improvement, the PHSI is now at its second highest reading over the past 12 months, but is noticeably down from this year’s peak level in April.
Regionally, the nationwide increase signed contracts over the month of June reflected growth in the Northeast and in the West. The PHSI in the Northeast led the way, advancing by 3.2 per cent over the month and by 1.7 per cent for the year. Meanwhile, the PHSI for the Midwest increased 0.8 per cent during the month of June and by 1.6 per cent over the past 12 months.
Recent developments in existing home sales indicate that the market continues to heal. Existing home sales, as reported by the National Association of Realtors, increased 1.1 per cent in June to the highest level since February 2007. June existing sales are up 3 per cent from the same month a year ago. First-time homebuyers grabbed 33 per cent of existing home sales, the best performance in four years while the distressed sales share was 6 per cent in June down from 8 per cent a year ago. Individual investors purchased an 11 per cent share in June, down from 13 per cent last month, and the lowest share since July 2009.
