Potential existing-home sales during July increased to a 5.82 million seasonally adjusted, annualized rate (SAAR), a 0.2 percent month-over-month increase and a 0.1 percent uptick from one year earlier, according to data from First American Financial Corp.
As of last month, potential existing-home sales were at 541,000 (SAAR), or 9.3 percent below the pre-recession peak of market potential, which occurred in July 2005. However, First American determined that the market for existing-home sales is underperforming its potential by 4.7 percent or an estimated 273,000 (SAAR) sales.
“Lack of supply continues to be the main story of the 2017 housing market,” said Mark Fleming, chief economist at First American. “Just a few months ago, the difference between the actual level of existing-home sales and the market’s potential was negligible, but supply issues have become a significant impediment and are preventing the market from reaching its potential.”