Existing Home Sales Jump 10% M/M To 4.53 Million, 3rd Worst On Record, 10.7 Months Of Inventory Supply
The NAR reported September existing home sales came at 4.53 million units, a 10% jump from the prior downward (of course) revised number of 4.12 million, compared to expectations of 4.3 million. Keeping this number in perspective, it is only the 3rd worst in history. The September median price for existing homes declined by 2.4% to $171,700 from a year ago. Most notably, 35% of existing sales were distressed sales compared to 34% in August. And since all of this data is for September, and thus complete noise now that the entire home sale perspective is thoroughly distorted thanks to foreclosuregate, none of this data is relevant at all. What is relevant, is that inventory of homes for sale dipped slightly from one year to 10.7 months worth of supply, or 4.04 million units. Look for this number to surge shortly as little to no transactions get done now that nobody is willing to actually insure home sales titles.
More from the ever optimstic Larry Yun of the NAR:
"A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions."
And some more truthiness:
"Vacant homes and homes where mortgages have not been paid for an
extended number of months need to be cleared from the market as quickly
as possible, with a new set of buyers helping the recovery along a
healthy path. Inventory remains elevated and continues to
favor buyers over sellers. A normal seasonal decline in inventory is
expected through the upcoming months.”
The year-over-year geographic breakdown is as follows: there is a staggered distribution, with the biggest drop in sales occuring in the most popular $100-$250K bucket, while the ultra luxury segment of $1MM+ actually increased.