August 04, 2009
– Comments (2)
June Pending Home Sales M/M +3.6% vs +0.7% consensus
What a shocker, the government is paying people $8,000 to buy homes and people are buying homes.....I can't believe it.
I have read several articles that said as much as 70% of foreclosured homes have yet to hit the market again. Banks are afraid to take the losses when they sell. I am not sure why their accountants would let them get away with it...
With the banks being beholden to the Fed (banks like BAC that bought Countrywide), they are more inclined to be pressured by the Fed to not put the homes back on the market to prolong the agony.
In summary, don't get too excited about the uptick - it is likely temporary...