US April existing home sales rise on healthy housing market

The United States April existing home sales rose, marginally above market expectations pointing to a healthy housing market in the economy. Also, U.S. home re-sales rose beyond expectations in April, indicating that the economy continues to boost during the second quarter.

Existing home sales rose 1.7 pct to an annual rate of 5.45 million units,the National Association of Realtors said on May 20. Also, March's sales pace was revised slightly higher to 5.36 million units from the previously reported 5.33 million units.

Further, according to a recent poll of economists by Reuters, home re-sales were projected to rise by 5.40 million-unit pace last month. Sales were up 6 pct from a year ago period.

Earlier this week US housing starts also increased more than expected in April as builders ramped up the construction of single- and multi-family homes. Single-family sales rose 0.6 pct m/m, to 4.81 million, driven by gains in the Northeast and the Midwest. Single-family sales in the South rose to 1.91 million, from 2.0 million and declined in the West to 1.13 million from 1.15 million. Condo and co-op sales rose 10.3 pct m/m across the country, to 640,000 units.

Median selling prices rose 6.3 pct y/y to USD232.5k on an average and in line with recent readings from other national home prices measures. Days on market fell to 39 from 47, and the composition of purchases shifted modestly toward first-time buyers to 32 pct, from 30 pct at the start of the spring selling season.

"Overall, solid existing sales and housing starts at the beginning of Q2 confirm our view that US housing markets remain healthy. We expect national construction and sales activity to continue to expand throughout the quarter," Barclays said in a recent research note.