Existing Home Sales Still Struggling in Wake of Tax Credit

Home sales were up 7.6 percent in August from July’s depressed numbers, but were still down from 2009 as the market deals with the tax credit hangover and a sputtering economy.
The 4.13 million annual rate in August was an increase from July’s record low, but was still the second-lowest on record, 19 percent below the numbers from a year ago.
Prices were up slightly (0.8 percent) to a median sale price of $178,600 and a 34 percent of homes sold were “distressed” (either foreclosures or short sales).
In slightly positive news, the inventory of homes for sale did rop to an 11.6-month supply. While still extremely high, that number is down from July’s record 12.5-month supply. (A healthy market is usually considered to have about a six-month supply.)