Existing Home Sales At an Annualized Rate of 4.53 million — Median Prices Down 2.4 Percent Year-Over-Year (UGLY OUT THERE)
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While you might think that a double-digit sequential increase in existing home sales from August to September means the U.S. economy is coming back—but be careful to base that number of sales on the typical in the U.S. Way back in 2002 (when we probably had our last normal market before the advent of giving anyone with a heart-beat a loan—and some without a heart beat–loans), existing home sales averaged 5.66 million versus the current 4.53 million. And that was 2002!
Prices dropped another 2.4 percent in September (versus September 2009) and sales were down an almost 20 percent from a year ago, same month. And yet NAR declares “Another Strong Gain”……… Sales went up due to the $8,000 homebuyer tax credit—but that was just a cannibalization of future sales. Agreed?
Where is NAR’s intellectual honesty?
As an economist, you get to sell your reputation just once until you are suspect.
And in full disclosure, I am also a member of the National Association of REALTORS®.
September Existing-Home Sales Show Another Strong Gain- realtor.org article