Existing Home Sales came in rather weak. This is the hangover from the governmental stimulus that forced the hand of buyers over the past few months. Now we are going to see what the organic growth may be, as long the hand of the taxpayer is kept from providing more subsidies.
January Existing Home Sales fell 7.2% MoM to 5.05 mln vs the 5.50 mln consensus, the second consecutive MoM decrease after four consecutive MoM increases. This trend is a direct result of the first-time homebuyers’ tax credit.
Realtors pressured buyers into purchases before the original expiration, leaving a much smaller pool of potential buyers in Dec and Jan. We expect that it will take a few months before the supply of potential homebuyers swells enough to support stronger sales.
The median price declined to $164,700 from $170,500 in December. Prices are now at the same level they were in Jan `09…