Existing Home Sales: Rebound Slightly More Than Expected

Bottom Line: After falling three straight months, home sales rebounded modestly, better than expected. Realtors reported that sales in Texas and South Florida were slower due to the hurricanes, holding back the nationwide total modestly. Home re-sales have averaged 5.39 million over the past 3 months and 5.48 million over the past 6 months, suggesting that the housing market has lost upward momentum. Inventories of homes available for sale climbed modestly; and the trend in months’ supply rose slightly. On a year-over-year basis, prices are still modestly higher. Existing Home Sales ROSE by 0.7% in September to 5.39 million, compared with market expectations for a decline to 5.30 million. There were no revisions to prior data. Home re-sales are now 1.5% BELOW their year ago level and are 25.7% BELOW their September 2005 record high.

• 42.9% of single family homes sold were priced in between 100k to 250k and 33.5% of single family homes sold were priced in between 250k to 500k.
• Single family home sales are down 5.9% year-over-year for prices in between 100k to 250k and are up 2.1% for prices in between 250k to 500k.

The Inventory of Homes Available for Sale ROSE by 1.6% to 1,900k but are still 6.4% BELOW their year ago level. Because inventories increased while sales increased, the Months Supply ROSE to 4.23 months from 4.19 months. This is still well BELOW its July 2010 cyclical peak of 12.4 (which was its highest level since 1982) and even BELOW the 6 month level that is considered 'normal'. Home Prices ROSE compared to their year ago levels. Average home prices are 3.5% ABOVE their year ago levels while median home prices are 4.2% ABOVE their year ago levels.