Home Sales And Government Incentives
Markets ended lower despite existing home sales data (thanks to tax credit and seasonal adjustment looking exceptionally good) which came at 5.57 million at annual rate vs. 5.35 consensus and 5.1 in August. Blomberg story: U.S. Economy: Existing Home Sales Surge on Rush for Tax Credit. Median home price fell 1.4% on monthly level despite reduced share of distressed sale of 29% versus 50% levels earlier this year. The question here is weather we will see cash-for-clunkers winding down effect here or extension of the program. My guess is extension of some kind.