EmailExisting home sales rose 7.7% in August from 4.670 mln in July to 5.03 mln. The Briefing.com consensus expected sales to increase to 4.70 mln.
The growth in sales was at odds with the underlying data. Both the Pending Home Sales Index for July and weekly reports in August for the Mortgage Bankers Association's Mortgage Purchase Index suggested there would be a decline in sales. That did not happen and calls into question the accuracy of those two indicators.
More impressively, the sales gains also came at a time when weather disruptions from Hurricane Irene at the end of the month made it impossible for some buyers to complete their sales. With some buyers forced to wait out the weather, existing home sales could see a further increase in September.
Prices fell 5.1% y/y in August, slightly better than the 6.0% y/y decline registered in July.
The increase in sales lowered monthly supply from 9.5 months in July to 8.5 months in August. That is the lowest supply level since March 2011.
