Resales Flat in October

Sales of existing single-family homes were flat at 4.37 million units in October compared with those of the previous month, according to figures released by the National Association of Realtors.Compared with the level recorded a year earlier, sales were down 21%. According to a report issued by RBS Greenwich Capital: "In essence, home sales plunged in August and September, reflecting the washout in mortgage financing conditions, and the question is whether sales will stabilize at the new lower level or continue to plunge." Greenwich said it has been arguing for the past two months that home sales "could bottom out relatively soon (a 3-6 month time horizon), but we are not prepared to take much comfort from the smaller decline in October" compared with those of previous months. There is now a 10.5-month supply of existing homes for sale, the highest reading since 1985.