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Notes to myself, possibly of interest to others.
-- Bill Northlich

Wednesday, November 24, 2010

Housing Report. Move right along...

For all the chatter about how much better the U.S. economy is doing, someone forgot to tell the residential real estate market. Not only did housing starts get crunched 11.7% MoM in October, but we also just saw existing home sales slip unexpectedly by 2.2% MoM to 4.43 million units — not to mention down 26% from last year’s incentive-induced level. The inventory backlog remains intractable at 10.5 months’ supply — a balanced market is closer to 6 months’ supply. Median resale prices slipped 0.6% in October and have fallen now for four months in a row, during which the slide has come to a 19% annual rate. Deflation, as it pertains to residential real estate, clearly remains a present-day reality.  [Rosenberg]

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