Weekly economic review & outlook
Homes sales soar despite even less supply
October 26, 2020
You Need to Know
Week in review
Existing home sales surge again
Strong demand conditions pushed up sales for September to the highest level since May 2006 even as the supply of homes on the market dwindles.
Housing starts up for September, too
Total housing starts rose modestly, but single-family starts were up sharply as builders look to meet surging demand.
New home sales should climb again
With demand factors continuing to be strong and the supply of existing homes on the market hitting an all-time low in September, new home sales should climb for a fifth straight month.
GDP growth will be the fastest since WWII
Following the incredible second quarter drop in real GDP, the reopening of the economy will boost third quarter growth to a record pace.
Existing home sales jumped by 9.4 percent for September as demand for housing remains hot this year in response to record low mortgage rates, the improving job market, and a desire for “space” with more employees working remotely. The 6.54 million annualized sales pace was the strongest since May 2006 and is up by an astounding 21 percent over the past 12 months. Aside from the housing boom period from 2004 to 2006, this was the highest monthly level for single-family sales ever (data back to 1968).