The number of previously constructed homes with a closed sale during the month. Existing homes (also known as home resales) are a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident for their own financial situation to buy a house. Analysts follow economic data such as home resales because it generates a tremendous economic ripple effect. Think about it new home buyers may purchase new refrigerators, washers, dryers and furniture.