Existing home sales came in at 4.13 million for the month of August. The number continues to bounce off the bottom of a cliff after the tax credit expiration as seen in the chart below:
The next chart shows the staggering amount of inventory on the market at 11.6 months:
Remember this number does not include the shadow inventory currently being held off the market.
Distressed homes rose to 34 percent of all sales in August.
With Fannie and Freddie finally ready to unload some of their inventory, that percentage will move up as we move forward.
The second round of the housing blood bath continues.