According the the National Association of Realtors news release this morning, we got nothing but good news out of the US housing sector in August.
What we learned?
August Existing home sales up +7.8 from July
Median Existing home prices up +9.5% y/y, as distressed homes percentages plummeted.
Inventories reached the 6.1 month level, a number associated with a 'tight' market.
All good news.
I thought the National Association for Realtors (NAR) news release itself spoke for itself.
"Total existing homes sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose +7.8%to a seasonally adjusted annual rate of 4.82 million in August from 4.47 million in July, and are 9.3% higher than the 4.41 million-unit level in August 2011.
The national median existing-home pricefor all housing types was $187,400 in August, up +9.5% from a year ago. The last time there were six back-to-back monthly price increases from a year earlier was from December 2005 to May 2006. The August increase was the strongest since January 2006 when the median price rose +10.2% from a year earlier.
Distressed homes- foreclosures and short sales sold at deep discounts - accounted for 22% of August sales (12% foreclosures and 10% short sales), down from 24% in July and 31% in August 2011. Foreclosures sold for an average discount of 19% below market value in August, while short sales were discounted 13%.
Total housing inventory at the end August rose +2.9% to 2.47 million existing homes available for sale, which represents a 6.1-month supplyat the current sales pace in August, down from a 6.4-month supply in July. Listed inventory is 18.2% below a year ago when there was an 8.2-month supply.
The median time on market was 70 days in August, consistent with 69 days in July but down 23.9% from 92 days in August 2011. Thirty-two% of homes sold in August were on the market for less than a month!, while 19% were on the market for six months or longer."
This is good news for homebuilders across the United States. Which is bullish for Broad Homebuilder Indexes (XHB and ITB), and the homebuilders themselves (PHM, KBH, DHI). And these stocks are up this morning.
What is your take on this NAR news?