Home Sales Highest and Inventory Lowest in More than Two Years

Highlights from Friday's report on existing home sales:

Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007 (see top chart above).

The inventory of existing homes for sale in September fell to 3.63 million homes, the lowest level since January, and 642,000 units below last September's inventory of 4.272 million homes. At the current sales pace, there is now a 7.8 months supply of existing homes, which is the lowest level since March 2007, two and a half years ago (see top chart above). Compared to the peak of 11.3 months supply of inventory in April, September's 7.8 months supply represents a reduction of 3.5 months.

The median home price in September was $174,900, which was up by 6% from the January low of $164,800, but 8.5% below last September's $191,200 price, and $2,400 below the August level of $177,300.

Bottom Line: The national real estate market is gradually recovering, and the worst is definitely behind us.

Comments

[Jan:]

I disagree completely, the only reason there are fewer houses for sale is because of the foreclosure moritorium that ran out this month, and because banks are only semi-foreclosing on deliquient mortgages. I suggest that you look closer at realtytrac numbers, and less at the numbers coming out of the NAR.

Oct 25 10:35 AM

[j-dub:]

With all due respect, Jan-
Reality will never be a part of this man's agenda.
He never responds, so your banging your head against the wall making suggestions to him.
Read his notes for humor and nothing more.


On Oct 25 10:35 AM Jan wrote:

> I disagree completely, the only reason there are fewer houses for
> sale is because of the foreclosure moritorium that ran out this month,
> and because banks are only semi-foreclosing on deliquient mortgages.
> I suggest that you look closer at realtytrac numbers, and less at
> the numbers coming out of the NAR.

Oct 25 11:05 AM

[User 113975:]

I think Your call for the end of the real estate crash is premature. We will probably get rising interest rates when FED starts figthing inflation, and guess how that will affect affordabillity?. Expect real estate to resume falling at the latest about a year after longterm interest rates come up, that is - about 2011. somewhere 2012 or 2013 we'll see a bottom in real estate prices.

Oct 25 11:28 AM

[58robbo:]

yup, and there's this tower in paris which i have for sale....

Oct 25 05:53 PM

[Kin Tsui:]

The worst may be behind us in 2009, but in the next 2 years, I think it will get more worse.

>Bottom Line: The national real estate market is gradually recovering, >and the worst is definitely behind us.

Oct 25 10:24 PM

[bigbear4511:]

Mark to market accounting allows for banks to sit and do nothing regarding forclosures. (at least for a bit). there are a slew of foreclosures delayed for that reason. They are building and when the dam breaks you see that the worst is in front of us.

Oct 26 03:12 AM

[swalter:]

Mark- how do you get published. When you are not giving us distorrted numbers from the NAR you are giving us other "good news". You are not accomplishing anything despite your agenda. Rather you are littering this area with useless cheerleading. When will you grow up?

Oct 26 09:06 AM