The Most Important Number of the Week Is 6.29 Million
Sales of existing homes suggest that consumers aren’t giving in to inflation just yet.
Housing prices aren’t holding back sales.
Photographer: Bing Guan/Bloomberg
Consider it the pause that refreshed. When U.S. home sales dropped in August, many viewed the decline as early evidence of “stagflation.” A vital part of the economy, which accounts for some 16% of gross domestic product, was faltering in the face of accelerating inflation, or in this case, fast-rising housing prices.
But then September rolled around and housing prices that were up 13.3% from a year earlier were no longer seen as an obstacle. Sales of existing homes as measured by the National Association of Realtors not only rebounded 7%, more than making up for August’s 2% drop and exceeding economists’ forecasts for a 3.7% gain, but the 6.29 million homes sold at an annualized rate were the most since January.