Existing Home Sales Slow

- Existing Home Sales for December fell to 6.6M versus estimates of 6.87M and 7.0M in November.

BOTTOM LINE: Sales of previously owned homes fell in December to the lowest level since March 2004, Bloomberg reported. Sales still finished 2005 at an all-time record high of 7.072 million. The median selling price rose 10.5% in December(y-o-y) to $211,000. Inventories rose to 5.1 months’ worth at the current sales pace versus 5 months’ worth in November. Home re-sales fell 11% in the West, 2.6% in the Northeast and 7.2% in the South. They were unchanged in the Northeast. I continue to believe housing is slowing to more healthy sustainable levels.