Today the Nar released their Existing Home Sales report. Sales decreased by 2.2 percent to some seasonally adjusted annual rate of four.43 million homes offered, lower from September’s pace of four.53 million homes offered. The figures were slightly worse than expectations of four.49 million homes offered.
Based on the report, total housing inventory is lower 3.4 % to three.86 million homes for purchase. This can be a 10.5 month supply in the current pace (when compared with 6 several weeks approximately inside a normal market). Perhaps, the overwhelming supply may be the largest hurdle facing a housing recovery.
Stated Lawrence Yun, President from the NAR:
“The housing industry is experiencing an uneven recovery, along with a temporary property foreclosure stoppage in certain states will probably have held back numerous completed sales. Still, sales activity is clearly from the bottom and is trying to settle into normal sustainable levels. According to current and improving employment market conditions, and from attractive affordability conditions, sales should continuously improve to healthier amounts of above 5 million by spring of the coming year.Inch
Figures released by CoreLogic yesterday recommended there are 4.two million homes for purchase (with what they termed “visible inventory”). I am sure their methodology is sort of not the same as the NAR’s, which likely makes up about the main difference. Whichever number you want, you will find a great deal of homes for purchase, and very little purchase demand, despite home loan rates which are near to historic lows. Whether the possible lack of demand is a result of poor people economy, the very first time homebuyer tax credit, or buyer skittishness concerning the market and declining prices (which is likely a mix of the 3), is sort of irrelevant. The possible lack of demand and glut of supply almost assures ongoing home cost declines entering 2012.