Existing Home Sales totaled 5.05mm annualized which was 450k below expectations and down from 5.44mm in Dec. It’s at the lowest level since June and follows the recent downward trend in the purchase index (now at lowest since 1997) of the weekly MBA data and Wednesday’s record low New Home Sales data. Both single family and condos/co-ops saw a fall and in every region. Months supply rose to 7.8 from 7.2 and to a 4 month high but was solely led by a rise in single family inventories. Condos/co-ops saw months supply fall to 9 from 9.4. The absolute # of homes available for sale fell to 3.265mm, the lowest since Mar ’06. The median price was flat y/o/y at $164,700 but matches the lowest level since May ’02. Bottom line, lower prices, $1T of MBS purchases and a home buying tax credit are not enough to offset the lack of confidence and tough labor market in generating sustainable sales growth.
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