Existing-home sales rose 6.5% last month, with many distressed deals. The median price fell 15.3% to $175,400. It is important to note the emphasis on distressed deals. The rise in sales is driven by forecosure sales.
Here are some views on the latest data report.
http://blogs.wsj.com/economics/2009/01/26/economists-react-dont-jump-out-of-your-chair-yet/
My favorite is this one:
The most substantial problem with the resales data is the increasing prevalence of bank-owned properties (ordinarily auctioned) are being sold through traditional realtor channels. This will tend to boost both inventories and sales, leaving the impression of higher activity levels, an increasing upward bias in the series. (The fact that the properties are finding buyers is not one of the many negatives) This is not the case with new construction, which shows a decimated sales pace through November 2008 –Steven Wieting, Citigroup
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