Highlights
Existing home sales pivoted steeply higher in November and October in what will prove a striking feature of graphs on the housing sector. Existing home sales, showing strength across all regions, jumped 7.4 percent in November on top of October's record 9.9 percent surge. The year-on-year rate is up 44 percent. The annual sales rate is 6.54 million split between single-family homes, at 5.77 million for a plus 42 percent year-on-year rate, and condos, at an annual 770,000 for a 60 percent gain. Strong sales and slow construction are draining supply which is at 6.5 months for the lowest rate in 3-1/2 years. Prices are leveling as the median price ended a long run of monthly declines, up 0.2 percent to $172,600. The year-on-year rate continues to improve, at minus 4.3 percent in November.

The report, compiled by the National Association of Realtors, estimates that government credits will add a very strong total of 4.4 million sales by June. Based on the expiration of the latest round of credits, the report sees sales slowing this month and into February before picking up in March and April as buyers rush to meet the deadlines. They also warn that mortgage rates, which are at record lows, will likely rise in the months ahead as the Fed unwinds its purchases of mortgage-backed securities.

The housing sector is offering clear evidence of how much government programs can affect the economy. Today's results will boost expectations for a second month of similar strength in the new home sales report, to be posted tomorrow. Reaction to today's report is limited but stocks did pop higher.

Market Consensus Before Announcement
Existing home sales for October came in at a much higher-than-expected annual rate of 6.10 million, up a record 10.1 percent. October's pace was driven by the expected November expiration of first-time buyer credits. Supply on the market fell to 7.0 months versus 8.0 months in September and 10.2 months a year ago. Though the credits have been extended until April and expanded beyond first-time buyers, November sales are likely to come off the October surge.

2009 Release Schedule

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