Existing home sales increased 2.4% in July compared to the previous month, though they remain below levels from July 2013. The National Association of Realtors reported that existing home sales were at a seasonally adjusted annual rate of 5.15 million homes. New home sales fell 2.4% in July compared to the previous month, with an annual rate of 412,000 homes. Several economic indicators point to an overall positive outlook for both existing and new home sales, including an increase in consumer confidence and pending home sales, as well as a rise in builder confidence and new home starts. Multifamily construction reached new highs in market share, with 94% of multi-family units being built-for-rent.

1. Eye on the Economy
Existing Home Sales Improving
August 7, 2014
eyeonhousing.org

2. Existing Home Sales 2
•Existing home sales increased 2.4% in
July
•Remains below July 2013 average
•NAR: existing home sales at a rate of
5.15 million
• Seasonally adjusted
•First-time buyer share continues to lag
•Read more here

3. Positive Outlook for Existing
Sales
3
•NAR pending home sales increased
3.3% in July
• Read more here
•Consumer confidence increased in
August
• Read more here
•Second quarter GDP revised to 4.2%
expansion
• Read more here
•Home prices rose 6%
• Read more here

4. New Home Sales 4
•New home sales fell 2.4% in July
• Annual rate of 412,000
•Last three month average remained
the same
• Slower pace than the first two
months of the year
•Read more here

5. Positive Outlook for New Home
Sales
5
•Average effective mortgage interest
rate at 4.25%
• Read more here
•A rise in builder confidence
• Read more here
•New home starts up 8.3% in July
• Read more here

6. Individual Submarket Conditions 6
•Market share and count of custom
home building increased in the second
quarter
• Read more here
•Townhouse market was relatively flat
• Read more here
•Single-family (built-for-rent) remains
off cycle highs
• Read more here

7. Multifamily Construction 7
•Multifamily (built-for-rent) reached new
market share highs
• 94% of multi-family
construction
• Read more here
•Multifamily Production Index gained
five points for the second quarter
• 10th straight quarters above 50
• Read more here

8. NAHB and FDIC Survey Data 8
•Acquisition development and
construction loan conditions continue to
improve
• Indicated ongoing easing
conditions
•Read more here
•FDIC data revealed 5.4% growth in
stock of outstanding residential AD&C
loans in the second quarter
• 16% higher than a year a go
• Read more here

9. NAHB Analysis 9
•Declining trend in new home median
lot size
• Read more here
•Federal Reserve Survey examining
household economic conditions
• Read more here
•Fair Market Rent estimates
•Read more here