Highlights
Existing home sales are accelerating, to a 5.24 million annual unit rate that is at the very outside of high estimates and the best rate in two years. The monthly change is a spectacular 7.2 percent, the strongest jump in 10 years and a doubling of the prior month's percentage gain. July's gain was especially strong for condos, at 12.5 percent to a 630,000 rate, while single-family homes showed a very strong 6.5 percent gain to 4.61 million. Distressed sales are still heavy at 31 percent of total sales but no worse than June and much better than 50 percent rates earlier this year. The regional breakdown for July shows strength in the Northeast, Midwest and South with the West showing a small downtick following a sizable gain in the prior month.

The number of homes on the market rose to 4.1 million but the supply relative to sales is unchanged at 9.4 months, a heavy reading but much improved from earlier in the recession. Prices are coming down which is one major reason for the improvement, at a median $178,400 for a 2.0 percent decline on the month. The National Association of Realtors, which compiles the report, doesn't expect prices to stabilize until year end. Credit's hard to get making cash king as cash transactions made up 16 percent of July's total vs. a long term average of under 10 percent. The S&P jumped to its best level of the year, at 1,022 in reaction to the report. Commodities are also rallying including oil, gold and silver.

Market Consensus before announcement
Existing home sales have been indicating the beginnings of recovery in housing with three consecutive increasing, the latest being a 3.6 percent rise in June. Sales levels are still weak, however. Nonetheless, we are likely to see another modest increase in July as the pending home sales index for June jumped 3.6 percent for its fifth consecutive increase. Pending home sales indicate the strength in existing home sale one to two months later.

2009 Release Schedule

Released On: 1/26 2/25 3/23 4/23 5/27 6/23 7/23 8/21 9/24 10/23 11/23 12/22 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov