Existing Home Sales Grows a Frothy Head

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.

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