Highlights
After two prior months of strong growth, sales of existing home sales fell back in September, down 1.7 percent to an as-expected 4.750 million for what is still the second best annual rate since the stimulus programs back in the spring of 2010. September's details show weakness but also strength. Sales in three of four regions show single digit declines with the South, which is by far the largest region, showing a fractional gain. Prices dipped fractionally in the month though the year-on-year rate for the median price, at plus 11.3 percent, is in double-digit ground for the first time of the recovery. Supply, at only 5.9 months at the September sales rate, is extremely tight which is not a plus for sales though it is for prices. Tight inventory is likely to further ramp up construction of new homes. Median days on the market for existing homes are 70 vs 101 days a year ago.

September's dip in existing home sales only slows the upward trajectory for housing, which is getting a boost from the Fed's policy of working down mortgage rates. The new home market has been especially active. New home sales for September will be posted on Tuesday. The Dow is holding at opening lows following today's report.

Market Consensus before announcement
Existing home sales rose strongly for a second straight month, up 7.8 percent in August to an annual unit rate of 4.82 million. This was the largest monthly percentage gain since last August and the highest rate since May 2010. All regions showed high single digit gains in the month. Supply on the market, at 6.1 months at the current sales rate, remains tight and may be limiting sales.

2012 Release Schedule

Released On: 1/20 2/22 3/21 4/19 5/22 6/21 7/19 8/22 9/19 10/19 11/19 12/20 Release For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov