Stable Home Market

Stable Home Sales Market

Existing-home sales eased last month, as did the number of homes available for sale--indicating the housing market is stabilizing, according to NAR. Total existing-home sale, including single-family, townhomes, condominiums and co-ops, dipped 1.9% to a seasonally adjusted annual rate of 6.18 million units in September from a level of 6.30 million in August, and were 14.2% below the 7.20 million-unit pace in September 2005, which was the third strongest month on record. David Lereah, NAR's chief economist, said stabilizing sales should build confidence in the housing market. "Considering that existing-home sales are based on closed transactions, this is a lagging indicator and the worst is behind us as far as a market correction--this is likely the trough for sales," he said. Total housing inventory levels fell 2.4% at the end of September to 3.75 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace. (Source: NAR)