Existing Home Sales bounce but below estimates

Nov Existing Home Sales totaled 4.68mm annualized, below expectations of 4.75mm. With the foreclosure disruption hitting in late Sept, Nov closings were likely influenced by this but it’s still the best level of sales since June and up from 4.43mm in Oct. All regions saw a rise and the gain was led solely by the single family sector. Distressed sales made up 33% of sales, in line with prior months but that may be impacted in the months ahead because of the foreclosure delays. Months supply fell to 9.5 from 10.5, the lowest since June but still remains well above a healthy level of 6 mo’s and some speculate that including shadow inventory, the level is more like 2 yrs. The listed # of homes for sale was 3.71mm, an 8 month low. The median price rose .4% y/o/y. Bottom line, while encouraging that sales are bouncing, they are still near levels last seen in 1997 with a lot more inventory ahead to plough through.

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