Sales of US existing homes slipped in September, but interestingly, lack of supply, not lack of demand, seems to be to blame. The number of months of supply at the current sales pace is down to levels not seen since March 2006, Bloomberg reports. In short, despite the decline there’s little to derail the “housing is healing” narrative in this report, issued by the National Association of Realtors. “This tightness of demand is perhaps best seen in the change of reported average prices … high end homes in particular have experienced significant price appreciation over the last 12 months,” wrote Michael Shaoul, chief executive of Marketfield Asset Management, a money manager. As we’ve pointed out several times, housing is one of the main ways that the Federal Reserve is hoping that its policy of keeping interest rates super low can get US the economy moving again. And it appears to be working.
By Matt Phillips
United StatesThis article is more than 2 years old.