Existing-home Sales

October’s existing home sales surged 10.1%, exceeding expectations and reaching the highest level since February 2007. The National Association of Realtors indicated that the unprecedented rise was likely due to buyers trying to beat the tax credit’s original deadline. For more details, visit cnnmoney.com.

According to BusinessWeek.com, today’s existing home sales report has already had positive effects: the data encouraged stock market traders and lifted equities.

Real estate experts Diana Olick, Steve Liesman, and Rick Santelli discuss the specifics of today’s report, agreeing that October’s numbers include several “good signs.” Click below to listen to their insight.

Action Economics released a calendar of the top economic reports that will be published next week. If their predictions are accurate, we’ll be giving thanks on Thursday for some positive economic news. More to come…

Existing home-sales rose 9.4 percent in September, reaching their highest level in almost two years and providing another indicator that the housing market remains on the road to recovery. Though home prices declined, economist Lawerence Yun predicts that the drop – a smaller dip than in previous months – reinforces hopes that home prices have begun to stabilize.

A shrinking supply of homes on the market (now a 7.8 month inventory) is also positive news. According to Realtor.org,

Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.

Click below to watch Peter Coy, Economic Editor of BusinessWeek, discuss the latest numbers.