Wednesday, January 06, 2010

US existing home sales are UP

This report below summarizes the US resale home sales volumes and prices

US Existing Home Sales, November 2009 Results
Source: National Association of REALTORS
Link to Release:

Summary: In November, U.S. existing home sales rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million units from a revised 6.09 million in October.

Sales remain at their highest level since February 2007. First-time buyers accounted for over half of sales, as buyers rushed to take advantage of the first-time buyer tax credit which was ultimately extended.

Inventories continued to decline, edging down to 6.5 months of supply from the 7.0 months recorded in October.

At $172,600, median prices for homes remained below 2008 levels, down 4.3 per cent from November of last year. The large number of “distressed sales” (approximately one-third) has been a drag on annual price growth.

Analysis: The growth in existing home sales and shrinking supply is a positive sign for the US economy. Similar to Canada, each resale home transaction results in substantial spin-offs to other sectors of the economy related to housing (financial services, home improvement etc.). The combination of shrinking supply and increasing sales also bodes well for renewed home price growth moving through 2010, which will serve bolster US consumer confidence.

This is important, given that consumer spending accounts for over 70 per cent of US GDP and is also the driver of US trade with other countries like Canada.

Tighter resale market conditions have also benefitted the new home market in the US. Many home buyers have spilled over into the new home market, which has resulted in more starts in recent months compared to the outset of 2009.

I hope this finds you Happy and Healthy!

All the Best!


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

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1 comment:

  1. US existing home sales are up as reported by the NAR? If you mine into the data you will discover that the increase is due to short sales and foreclosures!!! So much for slicing and dicing the data, as most economists and media pundits are doing, to make you believe that the bottom in US housing is in!!!!