By CountingPips.com
U.S. existing-homes sales fell more than expected for the month of December following three straight months of increases, according to the monthly report produced by the National Association of Realtors (NAR). The NAR report showed that existing-home sales including single family homes, co-ops and townhouses fell by 16.7 percent in December to a seasonally adjusted annual rate of 5.45 million units. Despite the monthly decline, existing-home sales increased by 15 percent an annual basis from the December 2008 level.
Market forecasters had predicted the sales data would fall by 9.8 percent in December to a 5.90 million unit sales pace.
November’s existing-homes sales had increased by 7.4 percent to a 6.54 million home rate and benefited from the government’s $8,000.00 tax credit for first time home buyers that was originally set to expire at the end of November.
NAR chief economist Lawrence Yun commented in the report about the sales figures, “It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit.” Yun said that he expects sales to rebound and will likely “surge in the spring” as buyers take advantage of the extended tax credit that has been continued through April 30th.
“By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010. However, the job market remains a concern and could dampen the housing recovery – job creation is key to a continued recovery in the second half of the year.”
The median sales price for existing homes was $178,300 in December, a 1.5 percent increase from the December 2008 median sales level and the first annual gain since August 2007. Total housing inventory decreased in December by 6.6 percent to a total of 3.29 million homes.
US Dollar mixed in Forex Trading.
The U.S. dollar has been mixed in forex trading today against the other major currencies as exchange rates have been not made much movement from the beginning of the day. The dollar has gained today versus the Japanese yen as the USD/JPY has increased from its opening rate of 90.00 at 00:00 GMT to trading at 90.22 as of 1:32 pm EST in the U.S. session. The dollar is trading virtually unchanged against the euro at the 1.4149 exchange rate after opening the day at 1.4153.
The British pound has advanced versus the dollar to trading at the 1.6241 exchange rate after opening the day at 1.6115. The USD has declined against the Swiss franc from 1.0415 to 1.0395 for a loss of 20 pips.
The dollar has gained slightly against the Canadian dollar as the USD/CAD pair trades at 1.0575 after opening at 1.0566 while the Australian and New Zealand dollars are trading just about unchanged from their opening rates versus the American currency.
The U.S. stock markets, meanwhile, have been positive so far today with the Dow Jones gaining by over 40 points, the Nasdaq increasing over 6 points and the S&P 500 up by over 6.80 points. Oil has edged up by $0.65 to $75.19 while gold is higher by $11.20 to trade at the $1,100.40 per ounce level.
