A Quick Look Into Today’s Existing Home Sales Report:

Existing Home Sales rose again for November at 6.54M units, a bit higher than estimates of 6.25M., as first-time buyers rushed to close before the original Nov. 30th deadline of the Home Buyer Tax Credit. Since then, the Home Buyer Tax Credit has been extended as well as expanded to include “move-up” buyers.

The inventory of unsold homes fell to a 6.5 month supply, down sharply from last month's 7 month level, and quite a bit lower than June's 9.4 month reading. Current sales remain at the highest level since February 2007 when they hit 6.55 million. Overall, this is a good report, but it is being somewhat fueled by the Homebuyer Tax Credit, as 51% of sales were from First Time Home Buyers.

Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. . “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010.

While this is a nice improvement and the 2nd consecutive month of gains in all categories of sales, keep in mind once the temporary Home Buyer Tax Credit goes away, we could see inventories start to creep higher again. Additionally about 1/3 of the homes that were sold were "distressed" or Bank Owned Homes, and majority of these purchases were from speculators buying homes and then quickly flipping them, which overstates the number of transactions. As the temporary stimulus program unwinds, it will be interesting to see if the housing momentum will be able sustain and grow.

Existing-home sales for December will be released January 25. The next Pending Home Sales Index is scheduled for January 5; release times are 10 a.m. EST

To Learn More, Check Out These Charts:

Existing-Home Sales and Prices Overview:
Current sales rates, actual totals and median prices by month going back 12 months. Annual totals for three years. Includes all existing-home sales — single-family, condos and co-ops — rolled into monthly and annual totals. Figures for the nation and four regions. No breakouts.
NAR YTD Existing Home Sales PDF

Breakouts of Single-family, Condo and Co-op
Figures for the nation only — includes total existing-home sales, single-family sales and condo/co-op sales — seasonally adjusted and actual. Months supply by category also included. Median and average sales prices for all existing-home sales, for single-family sales and for condo-co-op sales.
NAR YTD Existing Homes Sales (Breakouts)

Single-Family Existing-Home Sales and Prices
Current single-family existing-home sales rates, actual totals and median prices by month for 12 months. Annual totals for three years. Figures for the nation and four regions.
NAR YTD SFR Sales & Prices

Condo and Co-op Sales and Prices
Current condo and co-op sales rates, actual totals and median prices by month for 12 months. Annual totals for three years. Figures for the nation and four regions.
NAR YTD Condo Co-op Sales & Prices