Sept. existing home sales jump 9.4%
Sales of existing homes took a big, surprise jump in September, rising 9.4 percent compared with August, reaching their highest level since July 2007, according to the National Association of Realtors in numbers released moments ago.
Sales dropped 2.9 percent in August compared with July.
The median home price remained depressed compared with last year, however, which goes a long way toward explaining the sales surge. At $174,900, it's down 8.5 percent compared with this time last year. That, however, is the smallest year-over-year price decline in 13 months, suggesting a bottoming in housing prices may be coming.
Of course, sales have been goosed by the $8,000 first-time home buyer credit, which expires at the end of next month, unless it's extended by Congress.
Also, this is a cheap-house surge. Expensive houses are still not selling. Check out the data: 21 percent of the sales that made up the September jump sold for less than $100,000. Another 48 percent came from houses that sold for between $100,000 and $250,000, so that means only 31 percent of September sales were for houses that cost over $250,000.
I hate to be a Gloomy Gus, but this has a coming Cash for Clunkers hangover written all over it.
-- Frank Ahrens
Sign up to get The Ticker on Twitter
October 23, 2009; 10:42 AM ET
Categories: The Ticker | Tags: existing home sales, home sales
Save & Share: Previous: Stocks open mixed following strong earnings
Next: Third-quarter earnings scorecard: Amazon blows socks off Wall Street, Whirlpool circles drain
Posted by: bernadete | October 23, 2009 11:08 AM | Report abuse
Posted by: free_np | October 23, 2009 1:09 PM | Report abuse
Posted by: swazendo | October 23, 2009 1:13 PM | Report abuse
Posted by: Dermitt | October 23, 2009 1:31 PM | Report abuse
The comments to this entry are closed.