RE: Don't think soUS existing home sales for October, released last week Monday:
National Association of Realtors reportingthat October existing home sales rose 1.4% to 4.97 million units,exceeding expectations for 4.80 million. Total salesup 13.5% in year over year comparisons. Single family sales rose 1.6%to 4.38 million. Single family home sales up 13.8% in year over yearcomparisons.
The medianprice fell 2.0% to $162,500 from September’s US$165,800. Median pricesdown 4.7% in year/year comparisons. Inventories fellto 3.330 million from 3.406 million units. Months supply fell to 8.0months from 8.3 months previously.
US new home sales for October, released this Monday:
New-home sales increased by1.3% to a seasonally adjusted annual rate of 307,000 from a downwardlyrevised pace of 303,000 in September, the CommerceDepartment said Monday.
The median price inOctober for a new home was US$212,300, higher than the level of US$204,200 ayear earlier and yet down from the month before.
Year over year,new-home sales were 8.9% above the October 2010 level.
With builderspessimistic, the number of new homes listed for sale at the end ofOctober was 162,000, which is historically low. That supplywould take 6.3 months to deplete at the current sales pace and isaround a healthy level. The supply in September was 6.4 months.
The Commerce reportsaid October new-home sales were mixed. Sales rose 14.9% in the West and22.2% in the Midwest. Sales were flat in the Northeastand fell 9.5% in the South.
Don't forget that not long ago there was 11 months of home inventory, and last year it was 9 months.
Home buyers with cash will pounce once it seems that the bottom of house prices has been reached, as it has been in some regions, and home prices slowly start to climb.
The statistics for unsold home inventory is based on the rate of home sales that month, once real estate activity picks up the current 6-months inventory will be burned through rather quickly.
New home building will still be low next year but will start to improve over previous years.