By CountingPips.com
U.S. Existing Homes sales rose more than expected for the month of November according to the monthly report produced by the National Association of Realtors. The NAR report showed that existing-home sales including single family homes, co-ops and townhouses increased 7.4 percent in November to a seasonally adjusted annual rate of 6.54 
million units. October’s existing-homes sales also surged higher with an increase by 10.1 percent.
Market forecasters had predicted the sales data would rise by 2.5 percent for the month to a 6.25 million unit sales pace.
The median sales price for existing homes in November was $172,600, a 4.3 percent decline from the November 2008 median sales level. Total housing inventory decreased in November by 1.3 percent to a total of 3.52 million homes.
NAR chief economist Lawrence Yun commented in the report about the increased sales figures, “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead.”. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”
GDP revised lower for 3rd Quarter.
The U.S. economy grew by less than previously estimated in the 3rd quarter of 2009 according to by the U.S. Commerce Department. The government’s third estimate released today showed that the U.S. Gross Domestic Product grew at an annual rate of 2.2 percent in the July to September quarter following a 0.7 percent contraction in the 2nd quarter. The first estimate of the 3rd quarter GDP released in October had measured a 3.5 percent economic expansion while the second estimate showed a 2.8 percent increase in GDP from the previous quarter.
The economy had declined by 6.4 percent in the 1st quarter and contracted for four straight quarters before the third quarter economic growth. The 3rd quarter GDP increase was the best quarter for U.S. GDP since the 3rd quarter of 2007 (3.6%).
US Dollar gains in trading today.
The US Dollar has been on the rise today in forex trading against most of the other major currencies for the second straight day. The dollar has been gaining ground today versus the euro, British pound, Australian dollar, New Zealand dollar, Swiss franc and the Japanese yen while falling versus the Canadian dollar at 1:33 pm EST in the afternoon of the US trading session according currency data by Oanda.
The US stock markets, meanwhile, have also traded higher today with the Dow Jones gaining by over 45 points, the Nasdaq increasing over 10 points and the S&P 500 advancing by over 3.50 points at the time of writing. Oil has traded higher to around $74.28 while gold has fallen by $5.40 to trading around the $1090.00 per ounce level.
USD/JPY Houly Chart – The US Dollar gaining today versus the Japanese Yen in Forex Trading. The USD/JPY is trading at the top of the recent price channel above 91.50 and has been on a bullish run since hitting a 2009 low point of 84.82 on November 26th.
