NAR: “Existing-Home Sales Stumble in February”

by Bill McBride on three/22/2017 10:12:00 AM

From the NAR: Existing-Home Sales Stumble in February

Entire existing-home product sales, which can be achieved transactions that embody single-family properties, townhomes, condominiums and co-ops, retreated three.7 % to a seasonally adjusted annual cost of 5.48 million in February from 5.69 million in January. No matter closing month's decline, February's product sales tempo stays to be 5.4 % above a 12 months previously.
Entire housing inventory three on the end of February elevated 4.2 % to 1.75 million current properties obtainable in the marketplace, nonetheless stays to be 6.4 % lower than a 12 months previously (1.87 million) and has fallen year-over-year for 21 straight months. Unsold inventory is at a 3.Eight-month present on the current product sales tempo (three.5 months in January).
emphasis added

Existing Home SalesClick on on on graph for greater image.
This graph reveals current residence product sales, on a Seasonally Adjusted Annual Price (SAAR) basis since 1993.
Product sales in January (5.48 million SAAR) have been three.7% lower than closing month, nonetheless have been 5.4% above the February 2016 cost.
The second graph reveals nationwide inventory for current properties.
Existing Home Inventory
Primarily based on the NAR, inventory elevated to 1.75 million in February from 1.68 million in January. Headline inventory should not be seasonally adjusted, and inventory usually decreases to the seasonal lows in December and January, and peaks in mid-to-late summer season.
The ultimate graph reveals the year-over-year (YoY) change in reported current residence inventory and months-of-supply. Since inventory should not be seasonally adjusted, it really helps to take a look on the YoY change. Discover: Months-of-supply relies on the seasonally adjusted product sales and by no means seasonally adjusted inventory.
Year-over-year Inventory Inventory decreased 6.4% year-over-year in February compared with February 2016.
Months of present was at three.Eight months in February.
This was below consensus expectations. For current residence product sales, a key amount is inventory – and inventory stays to be low. I'll have further later …