Highlights
An easing in the number of distressed properties on the market is definitely giving the housing sector a lift with the latest evidence coming from existing home sales which surged 5.9 percent in November to a 5.04 million annual rate that beats even the high-end Econoday estimate. The number of distressed sales came to 22 percent in the month, down from 24 percent in October. Distressed sales had been making up a third of all sales through much of the year.

Hurricane Sandy seems to have had no significant effect on sales where in the Northeast they surged 6.9 percent following a modest decline in October. Sales in the other three regions all show gains for both November and October as well.

Scarcity of supply is definitely an issue in the housing market, one that is limiting sales but one also that is helping prices. Supply fell sharply, to 4.8 months at the current sales rate from 5.3 months in October which was already a multi-year low. The number of existing homes on the market, at 2.03 million, is the lowest since 2001. The median price, getting a boost from higher priced homes, rose 2.1 percent in the month to $180,600. The year-on-year gain, at 10.1 percent, is in double digits for a second month in a row.

This is a very strong report that confirms confidence in the residential sector which is increasingly taking leadership for economic growth. The Dow is moving higher following the report which should be a solid positive for the market through the session.

Market Consensus before announcement
Existing home sales in October bounced up 2.1 percent to a 4.79 million annual rate following a revised 2.9 percent decline in the prior month. Sales in the Northeast, which was hit at month end by Hurricane Sandy, fell 1.7 percent. The report's other three regions, led by the West, all showed gains. Continuing to hold down sales is lack of supply, down from 5.6 months in September to 5.4 months for the lowest rate in 6-1/2 years. The number of homes on the market, at 2.14 million, is the lowest in 10 years.

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