WASHINGTON (MarketWatch) -- Boosted by foreclosures and plunging prices in the West, sales of pre-owned homes and condos rose sharply in September to the highest level in 13 months, an industry trade group reported Friday. Existing-home sales rose 5.5% to a seasonally adjusted annual rate of 5.18 million, the National Association of Realtors estimated Friday. Economists surveyed by MarketWatch expected sales to rise to a 5 million pace from 4.91 million in August
The real estate bubble has been fueled by abundant credit, low interest rates allowing borrowing much more money for a much longer period and, most of all, by collective ideology pushing people to become first time buyers at any cost (and often, too high a cost), 'cause it will be worth even more tomorrow: real estate is a safe asset, can never go down...
Now, skyrocketing prices and credit crunch have cut the sucker's supply to this giant Ponzi pyramid, and the unraveling there is not going to look any prettier than the stock market... Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.
