Putting existing U.S. home sales into perspective with a few charts.
Existing Home Sales
Today’s fundamentals: strong existing home sales, but previous month revised down 30k.
Last two months of existing home sales data are inconsistent because of new regs that hit in that timeframe, but year-over-year data suggests healthier housing market.
The “higher rates will not affect sales” story may look a bit weak today but Existing Home Sales have not taken a beating – just flattened.
Home supply starting to show some elasticity.
Drop in existing home sales due in part to smaller supply of foreclosed homes.
The effect of a return to supply elasticity should be to keep home prices flatter.
GDP (3rdQ2012) – Real GDP – Quarter/Quarter +3.1% – GDP price index – Quarter/Quarter +2.7% – Final sales of domestic goods was +2.4% The previous iteration of 3rdQ2012 GDP was estimated at +2.7%. 2ndQ2012 had been +1.7%. The final sales of domestic goods is the best measure of economic health becaue it is all about
Rates end a very rough week on a positive note.
Housing Starts (August 2012) – Housing Starts 750,000. Previous was revised to 733,000. This is an increase but below expectation. Housing Starts are in units (a 40-unit apartment building is 40 Housing Starts) and the data is Seasonally Adjusted and annualized. The 750,000 Starts included 208,000 apartment units (5+ units in a single building) and