Sales of previously owned homes in the U.S. fell for the seventh consecutive month in September, down 8% from August.
The inventory of homes for sale nationwide rose to 10.5 months at September's sales rate. There was a 9.6 month supply at the end of August. (The number represents how many months it would take to sell all the homes currently for sale if sales activity remained constant and no more houses were listed for sale. An inventory of 5 to 6 months is usually considered a balanced market).
In the greater Bend area, there is currently a 14.5 month supply of existing homes for sale using the sales rate for September (98 previously existing homes) and the number of homes for sale today (1418). Interestingly, the inventory of homes for sale is unchanged at 14.5 months when adding new homes to the equation.
While these numbers surely don't indicate a robust housing market, they have caused the futures market to fully price in a quarter percentage point cut in the fed funds rate when the fed meets next week. This bodes well for even lower mortgage rates in the near future.
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