Spot gold spikes to $3,345/oz after U.S. existing-home sales rise 2.0% in July

(Kitco News) – Spot gold is posting strong gains once again this morning after the latest data showed the U.S. housing market improving beyond expectations last month.

Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 2.0% to a seasonally adjusted annual rate of 4.01 million in July, the National Association of Realtors (NAR) announced on Thursday.

The data was better than expected, as the forecast of economists called for a drop to 3.92 million. June’s total was unrevised at 3.93 million units. Year-over-year, sales were up 0.8% from July 2024.

Spot gold rose back into the upper half of its range following the 10 am EDT release, and last traded at $3,343.19 for a loss of 0.16% on the day at the time of writing.

Month-over-month sales increased in the Northeast, South, and West, and fell in the Midwest. Year-over-year, sales rose in the South, Northeast, and Midwest, and fell in the West.

“The ever-so-slight improvement in housing affordability is inching up home sales,” said NAR Chief Economist Lawrence Yun. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices. Condominium sales increased in the South region, where prices had been falling for the past year.”

“Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions,” Yun added. “Overall, homeowners are doing well financially. Only 2% of sales were foreclosures or short sales – essentially a historic low. The market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year.”

Total housing inventory stood at 1.55 million units at the end of July, up 0.6% from June and 15.7% from the 1.34 million in July 2024. Unsold inventory now sits at a 4.6-month supply at the current sales pace, down from 4.7 months in June and up from 4 months in July 2024.

The median existing-home price for all housing types in July was $422,400, up 0.2% from $421,400 one year ago and the 25th consecutive month of year-over-year price increases.

“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price,” Yun said. “Current inventory is at its highest since May 2020, during the COVID lockdown.”