Today’s report on existing home sales in September published by the National Association of Realtors brought a mixed message. There is a lot of data, but what you really need to know is this:
- nearly one in three buyers (29 percent, to be precise) paid in cash (almost unbelievable; it’s no wonder that the median fell),
- more than one in three sales involved a distressed property (35 percent),
- the median price fell 2.2 percent year over year,
- it was the biggest monthly gain in 28 years; 10 percent up from the August data without a seasonal adjustment, corresponding with a 19 percent fall from September 2009.
The data include some of the last closings with the tax credit. The impact of the stimulus was still relevant as more than one third of home buyers were first timers.
It almost looks as if the market was hitting bottom, only the sales figures for October are expected to be much worse, even though they may be nothing more than an aberration caused by the “Robo Gate“.