Calculated Risk did his usual terrific job breaking down the latest data for both the November existing home sales report as well as the new home sales (i.e. new construction).
The one point I would disagree with him is his way he discounts REO (bank owned) sales. Those are real sales. Buyers are just choosing to pursue those first right now because they are so often such a great deal. If we didn’t have REOs in the market, overall home sales would certainly be slower, but buyers would then end up buying more new construction or striking deals with tradition, normal sellers – not the banks.