Existing home sales surge!

[DavidS]

US Existing Home Sales Up 5.1% in February - Real Estate * US * News * Story - CNBC.com

The pace of sales of existing home in the U.S. rose 5.1 percent in February to a 4.72 million-unit annual rate, rebounding from the previous month's drop, while home prices fell again, the National Association of Realtors said on Monday.


Economists polled by Reuters were expecting home resales to slip to a 4.45 million-unit pace, from the 4.49 million rate initially reported for January, which was unrevised. February's sales increase was the largest since July 2003.


The inventory of existing homes for sale rose 5.2 percent to 3.80 million from the 3.61 million overstock reported in January. The median national home price declined 15.5 percent from a year ago to $165,400. That was the second biggest decline on record.

 

[editec]

Well...hopefully enough people are seeking to take advantage of dropping home prices to shore up the market.

But as the number of homes for sale continues to climb despite the increase in sales (an increase from last month's sales which were, bear in mind, not exactly a stellar month to begin with) I rather doubt it.

I DO hope you're right, though, as I may be selling my house this summer.

 

[auditor0007]

Well...hopefully enough people are seeking to take advantage of dropping home prices to shore up the market.

But as the number of homes for sale continues to climb despite the increase in sales (an increase from last month's sales which were, bear in mind, not exactly a stellar month to begin with) I rather doubt it.

I DO hope you're right, though, as I may be selling my house this summer.

The glut continues to increase, which will continue to drive prices lower. We are probably getting close to bottom though, as far as price goes. We're still going to see more homes hit the market though, adding to the glut. This is going to take at least five years before we see a real turnaround and growth in real estate.

 

[slackjawed]

I wonder where the turn-around was. It wasn't here in my area. I noticed that a lot of for sale signs were replaced with foreclosed signs. The is an entire subdivision that isnt quite done yet in this town that is still empty, the signs last week came down and were replaced with foreclosure signs. I think that means that some developer lost their shirt.

 

[mascale]

It's a message from the heavens. "Lawdy! Just Look At What Y'all ha' done!"

Conservatives believe in this, you know: And clearly, many, likePat Robertson, hold personal conversations, as often as is possible.

And Jesse Jackson even knows where "Hymie-Town" is located--and what knives are for.\

"Crow, James Crow! Shaken, Not Stirred!"
(In only a few weeks, now, post-Davos--and the admonition and remarks of Her Majesty's PM to the assembled former subjects, and subjects alike: And already the natives are restless. . .I think they say it?!?)

 

[Terral]

Hi David:

Your story is filled to the gills with bad news of a sick economy, but you act like this is good for some reason . . .

US Existing Home Sales Up 5.1% in February - Real Estate * US * News * Story - CNBC.com

The pace of sales of existing home in the U.S. rose 5.1 percent in February to a 4.72 million-unit annual rate, rebounding from the previous month's drop, while home prices fell again, the National Association of Realtors said on Monday.

Almost half of the sales represent distressed properties going into foreclosure or short-sale translations! Your quote above is not even like what appears in the article that says,

Sales rose 5.1 percent in February to a 4.72 million-unit annual rate, notching their largest gain since July 2003, the National Association of Realtors said, but about 45 percent of the sales were foreclosure or short-sale transactions.

Economists polled by Reuters were expecting home resales to slip to a 4.45 million-unit pace, from the 4.49 million rate initially reported for January, which was unrevised. February's sales increase was the largest since July 2003.

No. The article says,

[FONT=&quot]Economists polled by Reuters were expecting home resales to slip to a 4.45 million-unit pace, from the 4.49 million rate initially reported for January.

[/FONT][FONT=&quot]"Our analysis shows that distressed homes typically are selling for 20 percent less than normal market price, and this naturally is drawing down the median price,'' said Lawrence Yun, NAR chief economist.[/FONT]
[FONT=&quot]
RELATED LINKS[/FONT]
[FONT=&quot]
Current DateTime: 07:49:07 23 Mar 2009
LinksList Documentid: 29836368[/FONT]
·[FONT=&quot]Home Sellers May Flood the Market Soon[/FONT]
·[FONT=&quot]Long & Foster Leader to Get Top FHA Post[/FONT]
·[FONT=&quot]Mortgages Hard to Come By[/FONT]
·[FONT=&quot]Realty Check with Diana Olick[/FONT]
[FONT=&quot]
The median national home price declined 15.5 percent from a year ago to $165,400, the second biggest decline on record.[/FONT]
[FONT=&quot]
"Lower prices coupled with very low interest rates and an $8,000 tax credit are causing first-time home buyers to dive in,'' said Bill Emerson, chief executive officer of Quicken Loans in Livonia, Michigan.[/FONT]

The story describes an ‘artificial market’ moving because the number of distressed houses is ‘increasing’ and the median price is ‘decreasing’ and the Gov’t is giving away 8 grand of our children’s money to finance the sale of distressed property. This is like claiming that things are getting better for business, because more businesses went bankrupt and there are more ‘sales’ of their stock and office furniture and company vehicles . . . Yes, there are more sales, because more and more people are going into foreclosure, which means we should expect these kinds of sales to increase even more ‘and’ (this is the fun part), the price of the average home will continue to go DOWN.

You are looking at more than a 15 percent drop in a single year ‘and’ pretending that is good news. The moral to this story is this: With home prices continuing to TANK, then the people ‘holding’ the properties ‘and’ mortgages are seeing their assets depreciate with every passing day, because that median price by this time next year will be right around 140,000 dollars when the 15.5 percent decline continues.

That is the way we go about losing 25,000 dollars in just one year by purchasing the average house in this deflationary market today.

GL,

Terral

 

[Indiana Oracle]

Whatever works to unfreeze the housing market is good within the overall context of trying to get the economy moving again. It is one of the problems that needs to be solved, and more home sales will hasten a pricing bottom - pretty much regardless of the mechanics.

Most foreclosures are concentrated in about 23 counties nationwide (as I recall). This does not affect one's local view of things, but it helps put the housing situation into perspective since 97% of all bank loans are performing (FDIC).

We are coming off a housing bubble; prices are correcting. I believe, however, that the balance point is near at hand.

It is obvious that the overall economic situation looks bad, and that Washington is constantly spinning their dialogue. But the Washington crowd also wants to remain employed. They want a positive economic outcome - Obama of all people. It is also obvious that the, if it bleeds it leads, media makes a living pushing our emotive buttons.

The future years hold the threat of a double-dip recession or worse. Accepted. But that is then. This is now and any positive movement is, positive movement.

 

[Neubarth]

I wonder where the turn-around was. It wasn't here in my area. I noticed that a lot of for sale signs were replaced with foreclosed signs. The is an entire subdivision that isnt quite done yet in this town that is still empty, the signs last week came down and were replaced with foreclosure signs. I think that means that some developer lost their shirt.

There was no turnaround. It was another of a series of lies put out by the Obama administration. The news release claimed a 5% rise in sales. What it did not clarify was that sales are way down and following a straight line decrease if you start the line out in October and November you will see that February sales were right on the declining line.

It is all going to hell in a handbasket. The numbers jump around a bit on the way down, but they are still going down.

 

[wimpy77]

do you think anyone actually takes you seriously anymore?

 

[Annie]

I think that the decline in new housing, coupled with the bargains to be had now, are probably helping sales of existing houses. I also think that housing sales and prices are as always, a function of location. I've yet to see one 'bank owned' or 'foreclosure sale' sign around here, (Chicago Western Suburbs). Oh I'm certain there are properties, but not signs on the properties at least. I drive through 6 suburbs daily, not always the same route.

In 2006 my townhouse was appraised at $284k. From what I've been reading, would have thought today I'd be lucky to get $150-175. Seems there are reasons to use realtors and appraisers. I'm going to try and sell it this spring/summer. Found that a neighbor put the same model up for $210k, got an offer before the sign went up-she sold for $205 and the association was none too happy about that. In the past 3 months, 5 homes within 6 blocks have sold for $235-280k. Average time on market: 5 weeks.

 

[dilloduck]

How many of these home sales are made with foreign money and investors who have no plans to live in them ?

 

[editec]

I wonder where the turn-around was. It wasn't here in my area. I noticed that a lot of for sale signs were replaced with foreclosed signs. The is an entire subdivision that isnt quite done yet in this town that is still empty, the signs last week came down and were replaced with foreclosure signs. I think that means that some developer lost their shirt.

There was no turnaround. It was another of a series of lies put out by the Obama administration. The news release claimed a 5% rise in sales. What it did not clarify was that sales are way down and following a straight line decrease if you start the line out in October and November you will see that February sales were right on the declining line.

It is all going to hell in a handbasket. The numbers jump around a bit on the way down, but they are still going down.

What "lies of the Obama administration" are you talking about? This wasn't WRITTEN BY THE OBAMA ADMINISTRATION.

This is merely a report about the standard monthly statistics concerning existing home sales.

Secondly, it is not especially good news, despite DavidS' spin on it.

Existing home sales are up 5% from LAST MONTH. BFD.

 

[Annie]

How many of these home sales are made with foreign money and investors who have no plans to live in them ?

None, not allowed to rent them out.