Existing Home Sales Rise Despite Price Hikes
The National Association of Realtors (NAR) reported this morning that existing home sales rose by 2.3% to a seasonally adjusted annual rate of 4.47 million units in July compared with 4.37 million units in June. Analysts had been expecting a…
Total housing inventory stood at 2.4 million existing homes at the end of July, up slightly from 2.39 million in June. The total represents a 6.4-month supply at the pace of sales. Last July the inventory stood at a 7.1-month supply.
The nationwide median price for an existing home sale was $187,300, up 9.4% from July 2011.
Combined with today’s earlier report on mortgage applications and the solid earnings report from homebuilder Toll Bros. Inc. (NYSE: TOL), the U.S. housing market continues to make a comeback.
While the NAR’s figures on sales are important — especially to the group’s member Realtors — the inventory numbers are probably more important as a measure of where the market is headed. Based on existing home inventory, the housing market continues its recovery.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
