The Existing Home Sales report is issued by the National Association of Realtors around the 25th of each month, and is based on transaction closings in the United States. Home sales are defined as single family homes, townhomes, condominiums and co-ops from each of four regions, the Northeast, Midwest, South, and West. All figures are seasonally adjusted.
Housing inventory fell by 10.8% at the end of August of this year, to 3.62 million units which represents an 8.5 month supply. Earlier this year supply was being quoted at over 10 months, so things are improving. The national median price in August was $177,700 USD., down 12.5% from August 2008, due in part to downward pressure from the large number of distressed homes on the market.
Most readers probably get excited when they hear the word statistics, and even more elated when they get the chance to actually read and study them. Here is a brief look at September 2009 from the report issued October 23:
Northwest Median price $237,700. That price is 7.0% below the median for a year earlier.
Midwest Median price $147,600, 1.0% below the median from September 2008.
South Median price $153,500 for a 7.6% decline from September 2008.
West Median $219,000, a full 15% below the previous year.
According to the NAR, housing inventory at September 30 was 3.63 million units which now represents a 7.8 month supply. The national median price was quoted at $174,900 USD., which they say is 8.5% below September 2008. Existing home sales were actually up 9.4% in September this year for an annually adjusted rate of 5.57 million units, the highest level in 2 years. Sales were helped somewhat by the $8000 U.S. Government tax credit for first time buyers.
In Canada, existing home sales are also on the rise, with Vancouver, Toronto, and Calgary being the most active. According to the Canadian Real Estate Association, the national average price rose to $327,736 Cdn., which is up 11% from the July-September 2008 period. Low interest rates and greater consumer confidence were helping to draw more buyers into the market. Inventories are also declining in Canada, although with prices moving up, sellers could become motivated and have an impact on supply.
Housing prices and sales volume from the many areas of the country provide a number of ongoing stats. that can move the market. Observation and awareness of this information needs to be included in the day traders toolbox, helping to contribute to the edge we all need to succeed.
