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Home Our Perspective Existing-home sales plunge 27.2% Inventory of unsold homes jumps to 11-year high
Existing-home sales plunge 27.2% Inventory of unsold homes jumps to 11-year high PDF Print E-mail
Written by Steve Meyers   
Tuesday, 24 August 2010 11:36

WASHINGTON (MarketWatch) -- The sale of existing U.S. homes sank 27.2% in July -- the biggest one-month drop ever -- largely because of the phase-out of a federal tax credit, according to an industry trade group.

The National Association of Realtors said existing-home sales fell to a seasonally adjusted annual rate of 3.83 million in July from 5.26 million the month before. Sales of single-family homes fell to the lowest rate in 15 years.

A year earlier, existing home sales totaled 5.14 million in July.

Inventories of unsold homes rose 2.5% to 3.98 million, representing a 12.5-month supply, the highest level since at least 1999, the trade group said. And the supply of unsold single-family homes reached its highest rate since 1982. Read the full report on the NAR website.

 

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Josh  - Question |2010-08-24 11:55:42
Mr. Meyers,
If the GDP number is revised to less than 1% on Friday what effect will that have on the markets and could it possibly counter any announcement of QE?

Even JP Morgan says GDP will be much lower:
https://mm.jpmorgan.com/stp/t/c.do?i=101D3F-1042&u=a_p*d_452671.html*h_-2jf30m5

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Next release – August 27, 2010, at 8:30 A.M. EDT for:
Gross Domestic Product: Second Quarter 2010 (Second Estimate)
Corporate Profits: Second Quarter (Preliminary Estimate)


Thanks,
Josh
SteveM |2010-08-24 13:01:41
There is little doubt that we are in a depression. QE2 will only have a limited impact. I believe that we will spike for a few days and it will be over. That's IF it is announced. If they decide to wait until September the mkt should be 20% lower at that time so this is critical to the Fed's strategy.
Short and Poor! |2010-08-24 11:55:53
Hey Steve,

Just another quick note to say again how much all of us appreciate you time and effort on this website. It's an important source of information to many - even if we are not posting here all day - and we thank you.
SteveM |2010-08-24 13:02:35
Thanks S&P. It's always appreciated!
Mars  - BP & the Gulf |2010-08-24 12:28:52
The Gulf Crisis is Not Over
Slow Violence and the BP Coverups

http://www.counterpunch.org/
NV  - interesting reposessed home chart |2010-08-24 12:44:32
Link below did not work so posting again. testing my own ...

http://www.zerohedge.com/article/i-told-you-housing-was-going-take-downturn-worse-i%E2%80%99ll-tell- you-something-else-we-are-housing
thanks steve |2010-08-24 13:18:20
Steve,

Thanks for all your help. Nothings easy, I appreciate very much. For those who got in at 1090's and are now out what is best to keep gains and take advantage of next moves. some times what you say is a bit hard for me to discern I'm a novice but learning and keeping head above water. what time is the fed announcement and should you be positioned before it? how would you know when to react? I'm looking at taking new vxx at 1090. Ideas?
SteveM |2010-08-24 13:24:46
I am not sure the time of Bernanke's speech. I would wait to see if he mentions additional QE. If not, sell, If so, kick back and sell after a couple day spike.
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