Existing Home Sales

Existing home sales data tracks the monthly transactions of previously-owned single-family homes.

By grasping the context, significance, source, availability, and frequency of this report, investors and economists can more effectively analyze and interpret the data, allowing them to make better-informed decisions regarding the economy and the housing market.

The Existing Home Sales report serves as a vital economic indicator that sheds light on the condition of the housing market and overall economic activity.

This report quantifies the number of completed sales for single-family homes, townhouses, condominiums, and co-ops within a specific month.

The sales data provides a snapshot of the current state of the housing market and offers valuable insights into trends and variations.

By examining the Existing Home Sales report, economists and investors can detect potential changes in the housing market, which may have wider implications for the economy as a whole.

The Existing Home Sales report is regarded as a leading economic indicator, reflecting the robustness of consumer spending and borrowing behaviors.

A thriving housing market is often associated with a strong economy, as home purchases entail significant financial commitments and usually lead to increased spending on home improvements, furniture, and appliances.

Moreover, the housing market can influence other sectors of the economy, such as construction and lending. Thus, keeping an eye on existing home sales can provide a comprehensive view of the overall economic landscape.

Nearly 80% of homes sold are existing properties, with the remainder being newly built. Sales of existing homes can stimulate the economy.

Some sellers may reinvest the profits from their existing home sale into a larger home, which typically results in additional spending on furniture and appliances.

Other sellers might opt to use their profits for discretionary purchases. An increase in existing home sales also translates to more commissions for real estate agents and higher revenues for mortgage lenders and moving companies.

Existing home sales serve as an indicator of consumer spending and can affect interest rates.

Generally, robust growth in existing home sales is bullish for the dollar. Conversely, a decline in existing home sales over several months is bearish for the dollar, as it could lead to falling interest rates, which diminishes demand for the dollar.

The National Association of Realtors (NAR) is the primary source of the Existing Home Sales report. As a prominent trade association representing real estate professionals in the United States, the NAR gathers and analyzes data from Multiple Listing Services (MLS) nationwide to compile the report.

By consolidating sales data from a variety of sources, the NAR ensures that the Existing Home Sales report is accurate and reflective of the broader housing market.

The Existing Home Sales report is generally released on a monthly basis, around the third week of the month following the reporting month.

For instance, the report for January would be published in February. The NAR makes the report available on its website, ensuring easy access for economists, investors, and the general public.

As previously mentioned, the Existing Home Sales report is issued monthly, providing a consistent and up-to-date evaluation of the housing market.

This regular release facilitates the tracking of trends and shifts in the market, as well as the identification of potential turning points or emerging patterns that may influence the broader economy.