A report from the National Association of Realtors on Friday showed that US existing home sales fell 1.7 percent in September. This was in line with expectations though.
Significantly, the median price rose 11.3 percent from a year ago, the biggest year-over-year gain since November 2005, and the supply of existing homes fell 3.3 percent to 2.32 million, the fewest for any September since 2002. Supply now constitutes 5.9 months of sales, the lowest since March 2006.
Despite the fall in sales, Bill McBride sees this as a “solid report” due to the decline in inventory.
Markets did not positively on Friday though. From Bloomberg:
U.S. stocks slid the most since June and Treasuries rose as companies from General Electric (GE) Co. to McDonald’s Corp. and Microsoft Corp. posted results below estimates and euro-area leaders failed to discuss aid for Spain at a summit. Metals and oil led a slump in Commodities.
The Standard & Poor’s 500 Index fell 1.7 percent at 4 p.m. in New York, its worst drop since June 21, as GE, McDonald’s and Microsoft lost at least 2.9 percent. The Stoxx Europe 600 Index declined 0.8 percent, paring its advance this week to 1.7 percent. Ten-year Treasury yields fell seven basis points to 1.76 percent after rising for four straight days. The euro weakened against the dollar for a second day while copper and oil dropped more than 2 percent.
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