Oct. 22, 2012 – Sales of existing homes declined 1.7 percent in September, but this was “mainly payback for the big increase in August,” noted NAFCU Chief Economist David Carrier.
Released Friday, the data show existing-home sales came in at 4.75 million units on a seasonally adjusted, annualized basis. That data, following a robust 8.1 percent increase in August, rose 11 percent from the previous year.
The inventory level for existing homes fell 3.3 percent in September and now stands at 5.9 months of supply, down from the six months of supply reported in August. “The pace of sales was enough to lower inventory levels to 5.9 months of supply, which is the lowest it has been since 2006, well before the housing bust,” Carrier said.
Existing-home prices in September fell slightly on a monthly basis, but were up 11.3 percent from last year. “Year-over-year median prices have increased for seven consecutive months now, which has not occurred since 2006,” he noted.
The share of distressed homes for sale was 24 percent of total sales in September, compared with 30 percent the previous year. “A big factor in the recovering housing market is the steady decline in the share of distressed homes sales,” he said.
For more, view NAFCU’s Macro Data Flash.