Existing Home Sales Exceed Estimates

- Existing Home Sales for August rose to 7.29M versus estimates of 7.12M and 7.15M in July.

BOTTOM LINE: US sales of previously owned homes unexpectedly surged to the second-highest level on record and prices reached an all-time high in August, spurred by job growth and interest rates within a percentage point of historic lows, Bloomberg reported. The median price rose 15.8% to a record $220,000. Sale rose 5.6% in the West, 1.9% in the Midwest and 1.7% in the Northeast. Sales fell .4% in the South. The supply of homes available for sale, another gauge of housing demand, increased to 4.7 months’ worth in August versus 4.6 months’ worth in July. This was a very positive report. I continue to believe the nationwide housing market is slowing to more sustainable healthy levels.