Thursday, April 26, 2007

One Year Behind the US

Image from Calculated Risk.

In the US existing home market, March 2007 saw the months of inventory climb to 7.3 months and saw year over year price declines for existing homes. By my estimation, the entire US has not been pulled into this housing correction yet with much of the west having escaped relatively unscathed thus far. Its only a matter of time now before the western US gets pulled in and we go with them here in Vancouver.
Update: Thanks to gadwin for the link to this CNN story. This is only the beginning.
Update 2: This is one of the most professional and well written synopsis of the current US housing situation I have read yet. It is by Mark Kiesel at PIMCO.


gadwin said...

Did anyone catch this from CNN's finance website?

"Sales of existing homes fell 8.4 percent to an annual rate of 6.12 million in March from February's 6.68 million rate, the National Association of Realtors said. It was the biggest one-month drop since January 1989."


I thought home sales are supposed to increase from February to March (historically), not the other way around. Even for a bear like me, this is a bit overwhelming as it is implying home sales in the U.S. are decreasing heading into spring, rather than increasing ...


mohican said...

gadwin - sales did increase from Feb to Mar but not as much as normal so the seasonally adjusted sales number (which is what they are talking about) went down dramatically.

See charts on Calculated Risk post to see what I'm talking about.