by Calculated Risk on 2/27/2007 10:18:00 AM

The National Association of Realtors (NAR) reports: Existing-Home Sales Improve in January

Click on graph for larger image.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.0 percent to a seasonally adjusted annual rate1 of 6.46 million units in January from an upwardly revised pace of 6.27 million in December. Sales were 4.3 percent below the 6.75 million-unit level in January 2006.

The above graph shows NSA monthly sales for 2005, 2006 and 2007. On an NSA basis, sales were 2.7% below January 2006.

Total housing inventory levels rose 2.9 percent at the end of January to 3.55 million existing homes available for sale, which represents a 6.6-month supply at the current sales pace – unchanged from the revised December level. Supplies peaked at 7.4 months in October.

Usually 6 to 8 months of inventory starts causing pricing problems, and over 8 months a significant problem. With current inventory levels at 6.6 months of supply, inventories are now well into the danger zone.