Briefing.com


September Existing Home Sales

Updated 19-Nov-09 19:26 ET


Highlights

  • Existing home sales jumped 9.2% to 5.57 million units in September. The increase followed an unexpected decline (-2.9%) of sales in August.
  • The consensus was expecting sales to rise by a much more modest 5.1% to 5.35 million units.
  • The increase in sales helped push the total available supply down to 7.8 months.
  • Median prices continue to fall and are now at $174,900. Prices will continue to trend down as long as distressed properties make a significant chunk of total sales.

Key Factors

  • The jump in sales was mostly due to first-time homebuyers entering the market before the tax break ends in November. Sales will continue to go higher in October and November before falling significantly in December.
  • Beyond the headline sales numbers, there was another good piece of news from the data release. Distressed properties, which accounted for almost 50% of sales throughout the spring and summer, have declined significantly to only 29%. Sales of non-distressed homes make it more likely that consumers will start looking at more expensive properties as homeowners move up the pricing ladder.

Big Picture

  • Existing home sales seem to have reached a bottom and growth has resumed. However, sales will remain subdued while distressed properties continue to work through the system.

Category SEP AUG JUL JUN MAY
Existing Home Sales 5.57M 5.09M 5.24M 4.89M 4.72M
Months Supply 7.8 9.3 9.3 9.4 9.8
Median Price Y/Y -8.5% -12.7% -13.6% -15.3% -16.0%