Existing Home Sales Up Big, Inventory Down Big in October

posted on November 23rd, 2009 filed under: Real Estate News

Existing home sales for the month of October reached an annualized rate of 6.1 million units, says the National Association of Realtors.  That’s up almost 25% from the pace in October 2008.

Equally important, the inventory of homes for sale declined to 7 months, down very sharply from 8 months’ supply in September.  At that rate of change, there wouldn’t be any homes for sale soon.  The data support the case for a nascent housing recovery.

But look before you leap.  October’s data got a boost from the November expiration of the $8,000 homebuyer tax credit.  Some 30% of sales are distressed sales like foreclosures.  And the 6.1 million pace is getting back toward the 7 million or so that we reached at the peak in 2007, which marked the end of the biggest, phoniest real estate bubble in American history.

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posted by // This entry was posted on Monday, November 23rd, 2009 at 9:10 am and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed.

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