On the surface, today’s Existing Home Sales (down 1.7%) was fairly meh, but the real story is: Available housing inventory is evaporating and prices are rising.
This chart from Calculated Risk shows the inventory collapse.
Photo: Calculated Risk
And as for prices?
Here’s Ellen Zentner of Nomura:
Median home prices declined by 0.5% in September and likely reflect a higher share of sales that were distressed properties (short sales and foreclosures). The share of distressed sales increased to 24% from 22% in August. Distressed properties tend to sell at a 20% discount and fluctuations in the share of distressed sales can influence monthly home price movements. On a year-on-year basis, median home prices increased by 11.0%.