The existing home sales for April came in at 5.77 million, a 7.6% improvement from the month of March, as buyers rushed in to get their last chance at the home buyer tax credit.
Even with this one month gasp of adrenaline the total supply of home inventory INCREASED by 11.05% from the previous month.
The April inventory represents an 8.4 month supply of homes. (This does not include the massive shadow inventory on the bank's books that they are holding off the market.)
As the tax credit has now officially expired we will see sales plunge in the months ahead for new and existing homes. This will come in the face of the shadow inventory continuing to make its way into the current inventory supply.
Supply surging, sales plunging.