Following a 27.2 percent plunge from June to July, the pace of U.S. existing home sales increased 7.6 percent to an annual rate of 4.13 million units in August, down 19.0 percent on a year-over-year basis and the second lowest pace on record.
The percentage of distressed home sales increased to 34 percent (up from 32 percent in July and 31 percent in August 2009) while listed housing inventory dropped 0.6 percent to 3.98 million, an 11.6-month supply versus 12.5 months in July (a metric on which seasonality can wreak havoc).
∙ Existing U.S. Home Sales Pace Plunges 27.2% In July (25.5% YOY) [SocketSite]
∙ Existing-Home Sales Move Up in August [realtor.org]
That months of supply number is still brutal. Watch months of supply remain flat while SAAR slightly increases over the next year or two. The reasoning? More bank owned foreclosures trickling out on to the market.
But yeah, it’s different here or something.