US existing home sales jumped 4.7% in September

U.S. existing home sales jumped 4.7% in September to 5.55 mln units annualized, the 2nd highest level since February 2007, or in over eight years. Sales of single-family homes single-handedly drove all of the gain, as condo sales were flat. And there were more homes sold across the country, the Northeast (+8.6%), Midwest (+2.3%), South (+3.8%) and the West (+6.7%). 

But the selection is still an issue. Inventories remain low at just over 2.1 mln units (what a difference from the 4 mln homes that flooded the market back in 2007!), which puts pressure on prices. The median sales price turned higher again, up 6.1% from a year ago. Good for homeowners, not so much for buyers. In any event, with the current sales pace, the months' supply is at a low 4.8. In other words, conditions are tight. 

Aside from the positive headline result, there was a piece of negative news. The share of homes sold to first-time homebuyers slipped to 29%. Indeed, during a normal, healthy market, these buyers account for over 40% of sales and we are still far from that mark. But repeat homebuyers continue to step up and now make up 58% of overall sales.