According to the report, both single family homes increased month-over-month by 2.8 percent and multi-family homes (+6.6 percent, month-over-month) – and home sales hit their highest level in over eight years, providing another indicator that the housing market is continuing its impressive recovery.
“U.S. existing home sales accelerated again in June, reaching their highest level since February 2007. There were 5.49 million seasonally adjusted annualized existing home sales in June, good for a +3.2% m/m jump,” Scotiabank wrote in its Global economics report last week. “Perhaps even more importantly, the details and composition of the sales suggest noticeable improvements in the sector’s underlying health as distressed sales and all-cash purchases fall, while supply tightens.”
“The composition of sales is also improving: while first-time buyers are still floating around 30% of total purchases, investors have now dropped to 12% of purchases, a vast improvement over the 20+% shares investors were purchasing in 2012,” the report states.
Another indication of improving housing market health is the average time houses spend on the market.
In June, the average time was 34 days; down from 40 in May and 69 in January.
“There is also breadth by region: every region saw sales improve in June with the Northeast higher by 4.3 percent m/m, the Midwest gaining 4.7 percent m/m, the South higher by 2.3 percent and the West growing by 2.5 percent,” the report states. “The average price of resales is now higher by 4.6 percent y/y in June, while the median price is higher by a noticeable 6.5 percent y/y, with 9.9 percent y/y price gains in the West.”
It’s the little engine that could, as U.S. home sales chugged to a high not seen since the economic downturn, according to one big Canadian Bank.