Reality bites

For the month of August existing home sales were down 2.7% compared to July. This broke a string a four consecutive positive months. My opinion is that this data is a bit of an aberration from overall economic improvement.

Also within the report was the fact that overall housing inventory is 16.4% lower than a year ago. In other words, there are 16% fewer unsold homes on the market. This is a very favorable trend. That number also is a strong indication that supply and demand in the housing market are close to reality. Prices, year over year, fell by 12.5%. Reality bites, yes?

Jason