Lawler: Early Read on January Existing Home Sales

Lawler: Early Read on January Existing Home Sales

by CalculatedRisk on 2/17/2012 

Economist Tom Lawler is forecasting that the National Association of Realtors (NAR) will report sales of 4.66 million on a seasonally adjusted annual rate (SAAR) basis for January. The NAR is scheduled to report existing home sales on Wednesday, Feb 22nd at 10 AM ET.

This is a slight increase from the 4.61 million rate in December, and essentially unchanged from the 4.64 million rate reported in January 2011.

Tom didn’t send me an estimate for inventory, but based on other reports, I expect inventory to decline slightly from the 2.38 million houses for sale reported for December.

This sales rate, combined with a decline in inventory, could put months-of-supply under 6 months for the first time since early 2006.

Note: Even though there is a seasonal pattern for inventory (inventory usually bottoms in January and peaks in the summer), the months-of-supply metric is calculated using the seasonally adjusted sales rate and the not seasonally adjusted inventory. So the months-of-supply will probably increase again over the next 6 months.

Advertisements

Leave a comment

Filed under Home Sales

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s