The pace of existing home sales rose 3.9% last month, according to today’s report from the National Association of Realtors. The unexpected gain was the largest increase since March 2004, and marked the third-straight increase in existing home sales. Despite this, concerns persist about the slumping housing market and rising rates of defaults in the subprime mortgage market.
Against this backdrop, Thomas Kunz, President and CEO of Century 21, joined Erin Burnett on "Street Signs" this afternoon with his insight into the housing sector.
“We’re seeing a more normalized market place,” said Kunz.
When asked about the subprime fears affecting the market, Kunz said he expects that “subprime fear is in the minds of the consumer and not the mortgage business.” He also said that the subprime impact is less than one month of inventory.
Inventories of unsold homes on the market were up 5.9% to 3.748 million units in the latest month, according to today's report.
“High-end real estate will stabilize and the midrange is solid”, said Kunz. The median existing home sales price was down 1.3% from last year at $212,800.