Existing Home Sales: Rebound Accelerated Further in September

Bottom Line: The rebound in existing home sales accelerated further in September. Sales of single-family homes led, but both single-family and condos/coops were higher. The single-family market remains extremely tight, with months' supply falling to a record low of just 2.5 months of sales. Overall this was another strong report that confirmed housing activity will be an important driver of economic growth in the recovery. And the underlying trends confirm a secular shift away from more dense, urban living towards single-family homes. Existing Home Sales ROSE by 9.4% in September to 6.54 million, compared with market expectations for an increase to 6.30 million. The prior month was revised down from 6.00 to 5.98 million. Home re-sales are now 20.9% ABOVE their year-ago level but are 9.8% BELOW their September 2005 record high. The Inventory of Homes Available for Sale FELL by 1.3% to 1,470k and are now 19.2% BELOW their year ago level. Because inventories declined while sales increased, the Months Supply FELL to 2.7 months from 3.0 months. This is BELOW the 6-month level that is considered 'normal'. Home Prices ROSE compared to their year-ago levels. Average home prices are 11.6% ABOVE their year ago levels while median home prices are 14.8% ABOVE their year-ago levels.