Positive news from the housing sector
Existing home sales were reported this morning. Out of all of the statistics that are contained in the release, the one that jumped out at me the most was the following:
The supply of homes on the market fell to 251,000 in September, which is the lowest level since November 1982.
There were 7.5 months of supply in September - significantly below the all time record of 12.4 months of supply set in January.
Kudos to Big Picture and Calculated risk for mentioning this statistic as well.
I don't expect home values to come roaring back any time soon, but we could be nearing the end of the decline plus or at least be within a single digit percentage of it...assuming that the shadow inventory of homes that will eventually be foreclosed upon isn't too large and the expiration of the first-time home buyers' credit could does not have too significant an impact upon sales (though I personally wonder how long the juice from that program would last anyhow).
See charts below.