Sneaky Sales

November existing housing sales rose to a seasonally adjusted annualized rate of 5.81 million, tops since 12/06! But, curb your enthusiasm! Inventory levels, which were already painfully low at 1.8 million, fell to just 1.67 million. They are 9.7% lower Y-o-Y, and have declined Y-o-Y for 30 straight months; a miniscule 3.4-month supply. This will limit future sales growth. Relatedly, this week’s unadjusted purchase mortgage applications are flat Y-o-Y.