Sales of existing homes are second highest on record

USA Today has two real estate-related pieces, starting with August existing home sales numbers.

"Defying expectations, sales of previously owned homes rose in August to the second-highest level on record, with prices rising at the fastest pace in 26 years. The National Association of Realtors said Monday that sales of existing homes rose 2% in August to a seasonally adjusted annual rate of 7.29 million units, a sales pace that was exceeded only by an all-time high 7.35 million units in June."

"Economists had been forecasting a slight decline, believing the red-hot housing market was finally beginning to cool." Doh! [my own emphasis added]

The second article includes Alan Greenspan's current view on the housing market, which has become more optimistic in recent weeks. "Federal Reserve Chairman Alan Greenspan, softening his concern about a possibly overheated housing market, said Monday that many homeowners have enough equity to cushion the shock if prices drop."

"The vast majority of homeowners have a sizable equity cushion with which to absorb a potential decline in house prices," he said. Less than 5% of home borrowers were highly leveraged, according to one measure, he cited.

Thanks to Brett for sending these to me.