Yesterday, the National Association of Realtors said existing home sales fell 27% in July month over month to a seasonally adjusted annual rate of 3.83 million – the lowest level in at least 11 years. Granted, much of this can be attributed to sales being pushed from July into June because homebuyers were scurrying to take advantage of the $8,000 homebuyer tax credits that were going to expire (they ended up being extended to Sept. 30th). But still, this statistic should raise some eyebrows.
Seems anytime there is a deteriorating economic indicator or some sort of disappointing news, investors have a tendency to shrug off the bad news and look for any reason to take a chance because they are so eager to speculate in the market. We think it’s a great time for a reality check.
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