- Lawrence Yun, chief economist of the realtors group
US home resales surged to the highest level in more than eight years in June, while the median sales price hit an all-time high, according to the National Association of Realtors. Existing home sales rose 3.2% to a seasonally adjusted annual rate of 5.49 million in the reported month, whereas economists had predicted a 5.4 million annual rate. However, May sales were revised down to show an annual pace of 5.32 million. Existing sales are on track to record their biggest gain in eight years. June's positive home sales data came on the heels of last week's robust housing starts and building permits data. Housing starts soared 9.8% to an annualized pace of 1.174 million, the highest since July 2007. At the same time, building permits, which indicate the pace of future construction, surged 7.4% to an annualized pace of 1.343 million. A tightening labour market has begun to drive wages up, helping to spur demand for housing, especially among young adults. However, supply remains limited. The slew of strong housing reports indicate the world's number one economy remains on firmer footing despite a decline in retail sales and a slowdown in employment growth last month.
Meanwhile, a separate report showed the house price index climbed 0.4% on month in May, up from the 0.3% rise in the preceding month. The measure has remained in green territory since January 2014, except in September last year, when it posted zero growth.
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