WREN Report: Existing Home Sales Rebound

October 26, 2008  by in UnCategorized   

By Home Furnishings Business in on October 2008 • Sales of existing homes increased nicely in September, surprising both stock markets and analysts. Sales of existing homes, on an annualized basis, were up 5.5 percent in September compared with August sales, to a seasonally adjusted 5.18 million.

Home re-sales also posted an increase compared with year-earlier figures, up 1.4 percent, the first year-over-year increase in some months.

Measured against August sales, regional home sales in September were up in three of the four regions, with just the Northeast posting a decline, of 1.2 percent. Home re-sales were up 4.4 percent in the Midwest, 2.2 percent in the South and 16.8 percent in the West.

Compared with year-earlier numbers, only the West region reported a sales increase, skyrocketing 34.4 percent. Sales were down 7.7 percent in the Northeast, 2.5 percent in the Midwest and 7.8 percent in the South.

• Partnered with increased sales of existing homes was a drop in the number of homes for sale. Compared with August, the inventory of homes available for sale in September dipped 1.6 percent and declined 2.4 percent compared with September 2007.

As of September, there was a 9.9 months supply of homes on the market, down 6.6 percent from August and off 3.9 percent from September of last year.

• Prices of existing homes for sale continued to decline over this time last year, down 8.8 percent nationwide. All four regions reported price declines, off 3.3 percent in the Northeast, 9.4 percent in the Midwest, 4.6 percent in the South and 14.4 percent in the West.

Sales of existing homes are tracked by the National Association of Realtors.

Weekly Review of Economic News (WREN) reports are summaries of recently-released economic statistical data that affect the home furnishings industry. WREN reports are compiled by HFB Research Editor Janice Chamberlain.