September 2013 U.S. Home Sales, Inventory and Prices

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Because the Census Bureau is delaying the release of September’s new residential sales data until December 4 (when it will be combined with October’s data), this post will contain references to just existing home sales and prices.

Existing home sales decreased (by 100,000 units or 1.9 percent) to 5.29 million units (SAAR) in September. The median price of previously owned homes sold in September dropped by $10,500 or 5.0 percent), to $199,200. The number of existing homes for sale remained stable but months of inventory increased by 0.1 month. 

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Although the median price of existing homes for sale fell slightly in August ($800 lower than in July), housing affordability continued to erode because of rising mortgage interest rates and stagnant median family incomes. Concurrently, Standard & Poor’s reported that both the 10- and 20-City Composites in the S&P/Case-Shiller Home Price indices posted not-seasonally adjusted monthly gains of 1.3 percent in August (12.8 percent relative to a year earlier). Dallas, TX and Denver, CO continue to be the only cities that have surpassed their pre-recessionary price peaks. 

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.