Sales of U.S. Existing Homes Drop to Lowest in Four Months

[Purveyor]

Source: Bloomberg

By Ben Schenkel - Nov 20, 2013

Purchases of previously-owned U.S. homes fell in October to the lowest level in four months as limited supply and higher mortgage rates restrained momentum in the housing-market recovery.

Sales (ETSLTOTL) dropped 3.2 percent to a 5.12 million annual rate, the fewest since June, according to data released today by the National Association of Realtors in Washington. The median forecast of 76 economists surveyed by Bloomberg projected a 5.14 million pace. The partial federal shutdown last month may have delayed some closings, the group also said.

Concern that fiscal gridlock in Washington will damage the economy combined with the increase in borrowing costs amid expectations Federal Reserve policy makers will soon dial back monetary stimulus have slowed the rebound in housing. Sustained payroll gains would help repair confidence and enable more Americans to buy real estate.

“The housing data has downshifted in recent months, presumably because of the pop in mortgage rates beginning in the spring,” Thomas Simons, an economist at Jefferies LLC in New York, said in an e-mailed note. “Low inventories may also be impeding sales.”

Read more: http://www.bloomberg.com/news/2013-11-20/sales-of-u-s-existing-homes-fell-in-october-to-four-month-low.html

[frazzled]

1. "lowest in four months" kind of meaningless

This is not normally a high season for home sales, and never has been. And four months is not a particularly revelatory time span to look at. Not terribly concerned with these month-to-month statistics, as opposed to longer-term trends.

[jtuck004]

2. Trends

Approximate: Population:

1995: 270 million
2012: 316 million

Rent: UP:


Home Ownership: DOWN


http://www.doctorhousingbubble.com/landlord-nation-increase-renter-renting-households-us-rising-rents/