Tuesday we reviewed a dozen areas where home prices are rising. Wednesday yielded the release of home sales data with three more significant pieces of great news.
1. Sales of previously owned homes rose for the second month in a row in May. The improvement was 2.4% better than the sales rate in April.
2. Inventories of existing homes continue to decline rapidly. Inventory levels are now below the 10 month mark for all existing homes for sale. That level is down over 15% from a year earlier. There is now only a 9 month supply of existing single family homes on the market.
3. What may be the best news in Tuesday's home sale data is the fact that the number of distressed sales has drop precipitously. Earlier in the year close to 50% of sales were distressed. May's data shows that level down to 33%
It is no wonder then that home prices in many cities are beginning to recover.
Tuesday, June 23, 2009
Existing Home Sales Yields Good News Triplet
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What do you think of Calafia Beach Pundit's rather dour assessement of the FOMC action on interest rates and its effect on future bubbles?
ReplyDelete@Anon,
ReplyDeleteI don't agree. So far I see their actions as just about right. Time will tell, but right now indications are that the Fed policy is right on target.
GNE