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Existing home sales fall further in February
Tuesday, March 23, 2010
The National Association of Realtors reported that sales of existing homes fell 0.6 percent in February after a drop of more than 7 percent in January and sales are now at their lowest level in eight months.
It's probably best not to make too much of the winter data for existing home sales because it is a very slow time of the year when seasonal adjustments can have a big impact on the data and the weather was bad last month, but, that "Months of Supply" metric certainly looks to be going in the wrong direction right now.
4 comments:
Its surprising that this report is so weak, considering the fact the Tax credit is about to expire.
Most of those sales will close in April, May, and June so they won't be reported on until May, June, and July.
The prices are still far too high. More importantly, home size is still far too large for the average person to afford. The price problem can be solved, but the size problem of existing homes can't. New, smaller homes would have to be built to bring down the average size.
European homes are half the size of US homes, and European workers make more than US workers. This speaks volumes. Debt slavery is not a viable substitute for afford-ability.
Maybe the weak report despite the tax credit nearing expiry is indicative of the supply of greater fools.
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