Yes, Home Sales Surged, But So Did Inventories -- That's Not Good

Existing Home Inventory, April 2010

Photo: Calculated Risk:

The NAR reports: Existing-Home Sales RiseExisting-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 per cent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 per cent higher than the 4.70 million-unit pace in April 2009…

Total housing inventory at the end of April rose 11.5 per cent to 4.04 million existing homes available for sale, which represents an 8.4-month supply at the current sales pace, up from an 8.1-month supply in March.

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