by Calculated Risk on 3/21/2013 10:15:00 AM
Thursday, March 21, 2013
Existing Home Sales in February: 4.98 million SAAR, 4.7 months of supply
The NAR reports: Existing-Home Sales and Prices Continue to Rise in February
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February 2012.
Total housing inventory at the end of February rose 9.6 percent to 1.94 million existing homes available for sale, which represents a 4.7-month supply 2 at the current sales pace, up from 4.3 months in January, which was the lowest supply since May 2005. Listed inventory is 19.2 percent below a year ago when there was a 6.4-month supply.
![Existing Home Sales](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDxDgxw8Y93mAIUcxCBcU_OB8dGaUkcZkv-j9kmhrL9OtD3Urh-BXiqIANwnAewSPhDifo1CcHGYze7jWko6lfNXkmHl93TiRxN39g4FL_ISsG139YUTw_RNEOOZwpeFnAXByWIQ/s320/EHSFeb2013.jpg)
This graph shows existing home sales, on a Seasonally Adjusted Annual Rate (SAAR) basis since 1993.
Sales in February 2013 (4.98 million SAAR) were 0.8% higher than last month, and were 10.2% above the February 2012 rate.
The second graph shows nationwide inventory for existing homes.
![Existing Home Inventory](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRdpbXZeIxmpDHUZB3Z6EW1OPBjgxW_2IeFIWKFVN0jH4QJEiZB7VF8kMBGLtibSOQsVIRaUN7fYBXMZOjJPFBo8la-7TYx5oOakJbPucTExIcUgSWtsjkaf9hKAYmyCcXocmLEQ/s320/EHSInvFeb2013.jpg)
The last graph shows the year-over-year (YoY) change in reported existing home inventory and months-of-supply. Since inventory is not seasonally adjusted, it really helps to look at the YoY change. Note: Months-of-supply is based on the seasonally adjusted sales and not seasonally adjusted inventory.
![Year-over-year Inventory](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgaV2bF7wtRAIXfHtDRiIMl-YvuTH34F4f4blLiUdQhnFEzTFeqFjFL2hkV02_GAVZrTqRmzpq_V0Mbc8F8pUjKnADS1vEg3SkxzANnLBjbQ1ZT8eTqPrhGZxQ4y2XVDHMnAhX-vA/s320/EHSYoYInvFeb2013.jpg)
Months of supply increased to 4.7 months in February.
This was close to expectations of sales of 5.01 million. For existing home sales, the key number is inventory - and the sharp year-over-year decline in inventory is a positive for housing. I'll have more later ...