Less than a week after the NAR reported September existing home sales which surged at a 5.17 million annualized pace, the highest since September 2013, rebounding from the August drubbing which was also the worst miss in 2014, today the NAR flip-flopped and disappointed sellside expectations of a 1.0% rebound following the August -1.0% decline, rising a modest 0.3%, and less than half the 2.2% expected increase from a year ago, rising only 1.0% Y/Y. This was the third miss in the series in the last 4 prints.
Some commentary on the disappointing print, from Lawrence Yun, NAR chief economist: moderating price growth and sustained inventory levels are keeping conditions favorable for buyers. “Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,’ he said. ‘Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.’
That’s funny: we have been hearing that for the past 6 years. We also heard that rising rates are also bullish for housing as it means buyers have to rush to catch the last low rates before the spike. That didn’t quite pan out either.
This post was published at Zero Hedge on 10/27/2014.
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