Quote of the day: Seeing the light

“Builders are seeing the light…They are cutting prices more aggressively. They’re very nervous about all the foreclosures.”

-Mark Zandi, chief economist at Moody’s Economy.com, speaking to Bloomberg.

A Commerce Department report released this morning says that September new home sales increased 2.7 percent over August’s numbers, while median sales prices decreased to a four-year low, according to Bloomberg. That number doesn’t tell the whole story: “The increase in purchases was paced by a 23 percent surge in the West. Sales dropped 21 percent in the Northeast and 5.8 percent in the Midwest,” the report says.

Despite the one-month upswing, new home sales are still down 33.1 percent from September of last year, according to CNNMoney.com.

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