Existing Home Sales
What is Existing Home Sales?
Existing Home Sales, released monthly by the National Association of Realtors (NAR), measures the annualized rate of completed sales of previously owned homes including single-family homes, townhomes, condominiums, and co-ops. It represents roughly 90% of total US home sales and covers closings that occurred during the reference month.
Why does it matter for investors?
Existing home sales are a barometer of consumer confidence in housing and the broader economy. Each home sale generates significant economic activity — furniture purchases, renovation spending, real estate commissions, and mortgage originations. The months' supply metric (inventory ÷ sales rate) signals market tightness: below 4 months is a seller's market; above 6 months favors buyers. Falling existing sales alongside rising inventory can signal price corrections.
What to watch for
- ›Annualized sales rate vs. consensus estimate and prior month
- ›Months of supply (inventory/sales pace) — below 4 months = tight market
- ›Median home price YoY change
- ›First-time buyer share (typically ~30% of sales)
- ›Impact of current 30-year mortgage rate on affordability and sales pace
When are Existing Home Sales released?
Existing Home Sales are released by the National Association of Realtors on the 3rd or 4th week of each month at 10:00 AM ET, reflecting closings from the prior month.
What is a "months of supply" reading?
Months of supply measures how long it would take to sell all homes currently on the market at the current sales pace. Below 4 months is a seller's market (upward price pressure); 6+ months is a buyer's market (downward price pressure). The pre-pandemic norm was around 6 months.
Market Reaction
QQQ & SPY price change ±5 trading days around this event
Source: Yahoo Finance