The housing recovery continues as July existing home sales reported by the National Association of Realtors® (NAR) were up 10.4 percent compared to July 2011, and up sequentially from June 2012 by 2.3 percent. The following graph shows the seasonally adjusted annualized rate, averaged over the prior 12 months. By averaging, trends are more clearly viewed.
As sales have risen, supply has contracted. NAR reported an estimated six months of inventory in July 2012. This economist (Ted) believes that six months of inventory is normal, and neither a buyer’s nor seller’s market.
The following graph shows the moving 12-month average of median U.S. homes prices. Without question, a recovery continues to take place in the housing market. While home values still are 24.6 percent less than the peak in 2006, the 12-month median moving average price is up almost 3 percent from the bottom observed in February of this year.
Housing continues to systematically recover, and while still a long ways from normal, the trajectory is good news.
To read the entire NAR release click here.