Existing home sales tally the number of previously constructed homes, condominium and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends. (National Association of Realtors) Why Investors Care
| Released on 1/24/08 For Dec 2007 | ||||||||||||
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Highlights
Existing home sales keep falling, down 2.2 percent in December to a 4.89 million annual rate and a new low for the nine years of data in the series. December sales dipped across regions. Year-on-year sales tell the story of the housing market, down 22 percent and again spread evenly across regions. Between types, sales of single-family homes, despite being more expensive, are showing less weakness, down 2.0 percent on the month for a 21.6 percent year-on-year drop. Condo sales fell 3.3 percent in the month for a 24.5 percent 12-month drop.
One area that may have hit its worst level is supply, which slipped back to 9.6 months from 10.1 months in November. A year-ago supply was 6.6 months, a time when sales had already been on a long descent from September's 2005 peak rate of 7.21 million. The bloated supply is still having only a mild effect on prices, with the median price down 1 tenth in the month to $208,400 for a 6.0 percent year-on-year dip.
Treasury yields and the dollar slipped in immediate reaction to the headline disappointment. But the easing in supply is at least a mild plus as is the relative firmness of prices. New home sales, at 10:00 a.m. ET Monday, kick off next week's calendar.
Existing home sales in November edged up 0.4 percent to a 5.00 million annual rate. But the month-to-month gain masks weakness in the data as the level is the second lowest in the nine years of the current series. Supply on the market, though still bloated, slipped to 10.3 months in November from 10.7 months in October. Prices remain firm, rising 1.6 percent to $210,200, down only 3.3 percent year-on-year. But the median price is likely overstating how well prices are holding up, given that the low end of housing is likely weaker than other segments. Continuing softness in consumer confidence and tighter lending standards suggest another near record low pace in December.
Existing home sales Consensus Forecast for December 07: 4.95 million-unit rate
Range: 4.90 to 5.10 million-unit rate
![[Chart]](chart.gif)
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Existing home sales reached a peak in mid-2005 and have been easing since. Typically, a distinct reverse relationship exists between home sales and mortgage rates. |
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