Friday was the day for Existing Home Sales, and they came in at 5%. That was a bit better than expectations. You have to look at the mix of the number, however, to see the full picture. Distress sales made up 32% of the market. Investor sales were 21% of the sales. Cash sales were 34%. These are still indications that the housing market is in the pre-recovery mode where the buyers are those still looking for investments or rock-bottom prices before the market returns. It always happens before the market returns. The question is when it will return. An important feature is that prices were down 2.5%. We still have not found bottom on pricing. That makes sense given there is still speculation on the downside. It will turn someday.

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