Up Tick Not As Good As It Seems

At first look it seems existing home have stabilized somewhat when compared to new homes sales that have fallen off a cliff. New homes sales 4th quarter 2008 was the lowest on record since 1963.

But if you take out foreclosures and short sales existing home sales look bleak. Distress sales were 45% of existing sales in 2008.

Check out this chart:

http://themessthatgreenspanmade.blogspot.com/2009/02/ratio-of-new-to-existing-home-sales.html

As an appraiser its tough out there trying to find non distress sales for an appraisal report and having an underwriter asking for four or five comparables - all non distress sales.