Sales of Existing Homes in the US climbed to an annualized rate of 5.24 million, beating estimates for a gain to 5.0 million from 4.89 million. The figure climbed for the fourth consecutive month with a sharp gain of 7.2%, well ahead of estimates for a rise of 2.1%. Dwelling deeper into the release, sales of single family homes gained 6.5% while condos/co-ops climbed more than twelve percent for the second month. Less uplifting, the supply of homes remains higher at 9.4 months at the present sales rate, the same as the previous monthly report. Prices meanwhile, showed continued improvement in average price rising to $237,400, the highest in eleven months, while median prices fell slightly. The highest sales in nearly two years echoes calls from leading economists that the US economy has reached a bottom and that recession is easing. Further signs of stability in the housing sector may lead to increased consumer spending in durable goods.
Reacting on the release, US equity markets extended earlier gains with the three main indices now higher by more than one percent. The Dow moved to a new year-to-date high, surpassing the recent best set on August 7. On the currency front, dollar weakness has been the story of the morning and continues to remain key as risk appetite continues to favor rivals, with commodity countries seeing the largest gains as chief exports rally including metals and crude.
[B]Annualized Existing Home Sales[/B]
