We haven’t looked at this chart in a while, but let’s pull up the ole NSA Existing Home Sales, courtesy of Calculated Risk:
Existing Home Sales, Non Seasonally Adjusted
Put this in context, and a few things stand out:
1) From June 2009 to present, monthly sales have improved from year ago levels; Sept-Dec 2009 improved upon 2 year ago levels.
2) Current Existing Home Sales remain far below 2005-06-07 levels.
3) The combination of MBS purchases by the Fed (holding mortgage rates artificially low) and purchase tax credits from Congress appears to have (at least temoprarily) goosed sales.
MBS is now finshed, and the Tax credit expires at the end of this month.Can Home Sales stand on their own feet without any further subsidies?
I doubt it . . .