|
Existing Home Inventory
|
. |
|
|
 |
| MOST RECENT STATISTIC: |
3,630,000 |
|
|
| GRADE: |
D+ |
| PERIOD COVERED: |
Sept. 2009 |
| Date Released: |
10/23/09 |
|
|
|
| Next Release: |
11/23/09 |
|
|
|
|
|
|
09/09 |
08/09 |
07/09 |
09/08 |
|
|
| Inventory (000s) |
3,630 |
3,924 |
4,062 |
4,272 |
|
| % Change |
- |
(7.5%) |
(10.6%) |
(15.0%) |
|
| Months of Supply |
7.8 |
9.3 |
9.3 |
10.1 |
|
| % Change |
- |
(16.1%) |
(16.1%) |
(22.8%) |
|
|
| Source:
National Association of Realtors |
Analysis for the Housing Market
By:Ken Lee
Existing home inventory levels posted its second consecutive month of declines in September. Inventory of existing homes fell 7.49 percent to a preliminary 3,630,000 units from an upwardly revised 3,924,000 units in August. This is the largest monthly decline in inventory levels since December 2008. September's inventory level is 10.64% lower than the 4.272 million units of inventory a year ago. Existing home inventory has recorded year-over-year declines for the past fourteen months. The rush to buy a home before the expiration of the homebuyer tax credit at the end of November has helped reduce the inventory of existing homes on the market.
Months of existing home inventory dropped significantly due to a jump in sales activity along with the drawdown in units for sale. At the current sales pace, there are 7.8 months of supply of existing homes on the market compared to 9.3 months in August. Months of existing home inventory have not recorded an increase since April and are now at their lowest levels since March 2007.
Definitions and Importance for the Housing Market
By:Ken Lee
Existing home inventory figures are closely watched by homebuilders and lenders. Housing inventory is a seasonally adjusted number of existing homes available for sale at the end of each month. Months-of-supply is the number of months it would take to sell the housing inventory based on the current annualized sales rate.
The inventory of existing homes is an excellent indicator of housing demand. The direction of change in inventory levels is an early indicator of the health of the housing market.
For more information on existing home sales, go to: http://www.realtor.org/Research.nsf/Pages/EHSdata
For information on new home inventory at the metropolitan level, see the Market Monitor or New Home Executive Summary at
www.hwmarketintelligence.com.
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