U.S. Sales of Existing Homes Fell in October, Inventories Remain a Challenge
Housing-Market / US Housing Nov 24, 2010 - 09:19 AM GMTBy: Asha_Bangalore
Sales of all existing homes fell 2.2% in October, after posting gains in August and September, to an annual rate of 4.43 million. Purchases of existing single-family homes dropped 2.0% to annual rate of 3.89 million in October, putting the year-to-year decline at 28%, the largest drop for the current downturn. On a regional basis, sales of existing homes fell in all regions of the nation in October.
The median price of an existing single-family home fell 0.5% from a year ago to $171,100. Seasonally adjusted inventories of existing single-family homes rose to 11-month supply in October from 10.8-month mark in September (see Chart 6). The elevated level of the reported inventory and shadow inventory of homes are holding back home prices.
Asha Bangalore — Senior Vice President and Economist
http://www.northerntrust.com
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.
Copyright © 2010 Asha Bangalore
The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.
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