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Existing Home Sales

Existing home sales rose 1.4% in October to an annual rate of 4. Million which was better than expectations. Existing home sales are 13.5% above their year ago level but remain 31.4% below their September 2005 peak. The inventory of homes available for sale fell 2.2% last month to 3.330 million which represents an 8. Month-supply at the current sales pace.

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79 views1 page

Existing Home Sales

Existing home sales rose 1.4% in October to an annual rate of 4. Million which was better than expectations. Existing home sales are 13.5% above their year ago level but remain 31.4% below their September 2005 peak. The inventory of homes available for sale fell 2.2% last month to 3.330 million which represents an 8. Month-supply at the current sales pace.

Uploaded by

Jessica Kister-Lombardo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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BETTER THAN EXPECTED, BUT COULD BE BETTER

Existing Home Sales Monday November 21, 2011

Record High: 7.25 M (09/05)

Percent Change from Record High: -31.4%

Existing home sales rose 1.4% in October to an annual rate of 4.97 million which was better than expectations. Existing home sales are now 13.5% above their year ago level but remain 31.4% below their September 2005 peak. All cash sales accounted for 29% of transactions; distressed sales comprised 28% of the total, first-time buyers accounted 34% of sales while investors made up 18% of total transactions. Contract failures soared to 33% last month from 18% of total sales previously; indicating sales could have been much higher. Regionally, sales were up in three areas with a 4.4% gain in the West, a 2.1% rise in the South and a 2.8% increase in the Midwest. Sales declined 5.1% in the Northeast. The inventory of homes available for sale fell 2.2% last month to 3.330 million which represents an 8.0 month-supply at the current sales pace. Anecdotal evidence suggests that there is a large shadow inventory of homes available for sale, especially bank owned properties. That will continue to weigh on prices going forward. Indeed, home prices declined again in October with the median price for an existing home down 4.7% over the past year to $162,500 while average prices dropped 4.6% to $208,200. Existing home sales are weak but remain within the range seen in the last couple of years. The housing market recovery continues to be thwarted by a weak economy and stagnant labor market conditions. Contract failures continue to weigh on overall sales. Economists expect home resales to bump along the bottom for the near future with a price and sales recovery beginning possibly late next year.
MILLIONS OF UNITS Forecast: Consensus*: Actual: 4.90 M 4.80 M 4.97 M Monthly Changes Oct-11 4.97 1.4 13.5 750 -5.1 1,100 2.8 1,940 2.1 1,190 4.4 3,330 -2.2 -13.8 8.0 162.5 -4.7 208.2 -4.6 Sep-11 4.90 -3.2 11.1 790 2.6 1,070 -2.7 1,900 -2.1 1,140 -8.8 3,406 -4.1 -14.9 8.3 165.8 -3.3 213.5 -2.1 Aug-11 5.06 8.4 19.3 770 2.7 1,100 4.8 1,940 5.4 1,250 20.2 3,551 -3.7 -13.7 8.4 171.2 -3.4 219.5 -2.8 Jul-11 4.67 -3.5 21.0 750 2.7 1,050 1.0 1,840 -1.6 1,040 -12.6 3,686 -0.8 -8.0 9.5 171.2 -6.0 220.4 -4.9 Three Month 4.98 Six Month 4.88 Average Changes for Twelve Month 2010 2009 4.96 4.92 -4.5 770 1,090 1,927 1,193 760 1,065 1,890 1,162 783 1,070 1,906 1,202 863 1.8 1,168 3.5 1,907 2.7 1,214 14.4 3,560 8.4 8.7 172.4 -0.2 219.5 1.2 5.15 5.2 848 -16.0 1,128 -15.2 1,857 -17.3 1,062 -2.8 3,283 -11.3 7.7 172.7 -12.4 216.8 -10.2 996 1,342 2,258 1,268 988 1,356 2,200 1,295 Five Year 5.43 Ten Year 5.81

Existing Home Sales (millions) (percent change) (year-on-year percent change) Northeast (thousands) (percent change) Midwest (thousands) (percent change) South (thousands) (percent change) West (thousands) (percent change) Inventory (thousands) (percent change) (year-on-year percent change) Months' Supply Median Sales Price ($000) (year-on-year percent change) Average Sales Price ($000) (year-on-year percent change)

3,429

3,556

3,563

3,593

2,935

8.3 166.5

8.8 169.3

8.6 165.8

8.0 196.2

6.2 188.5

213.7

217.5

213.9

242.0

232.8

Source: Bureau of the Census, Department of Commerce Via Haver Analytics. Data, graph & table courtesy of Insight Economics *Bloomberg 2011 HousingMatrix, Inc. http://www.HousingMatrix.com | All rights reserved. Reproduction and/or redistribution are expressly prohibited. Hot Sheet is a registered trademark of HousingMatrix, Inc. Information contained herein is based on sources we believe to be reliable, but accuracy is not guaranteed.

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