Home sales up

Existing home sales are up 9.4% from last month and actually the annual rate of sales number of existing homes sold last month were the largest number in the last 12 months.  The inventory is down to 7.6 months worth of supply.

The large number of sales however come as prices continue to decrease.  Prices are down 8% from the average price 12 months ago.  So it is easy to see that these gains in sales are from lower prices and the $8,000 credit for first time homebuyers.

The question still remains how many foreclosures are sitting on the banks books that haven’t been put on the market yet, and if the tax credit goes away will home sales decline?  This is still the hardest hit part of people’s net worth.