Last week the NAR reported the number of closings of previously sold homes. They call the report "Existing Home Sales." It is true that they are existing homes, but the count does not show the number of sales. It shows those that have closed or settled. The sale happens when the contract is signed. That's when theirs a meeting of the minds between buyer and seller, and when the price is established. All parties to the deal agree that the property is sold, including the Realtor who puts up a SOLD sign on the property. Buyers in the market, consider the property sold.
Existing Home Sales Grows a Frothy Head
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.