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Spinning the good news: home sales
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DrTorch Offline
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Post: #1
Spinning the good news: home sales
Well the MSM is doing everything it can to ensure us that all is well, after 8 years of doom and gloom. They do have their agenda.

I love these home sales articles

Quote:Home sales climb, but at a sluggish pace
Median price for existing homes off almost 17 percent from year ago

Nationwide home sales may have finally hit bottom, new data show, but a host of thorny problems are hindering any recovery.

Sales of previously occupied homes rose by 2.4 percent from April to May — the third monthly increase this year — but the results missed analysts' expectations.


http://news.yahoo.com/s/ap/20090624/ap_o...dob21lc2E-

Quote:May new home sales dip 0.6 percent
The Commerce Department said Wednesday that sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000. Sales were down nearly 33 percent from May last year.

The results fell far short of economists' forecast of a 360,000 sales pace, according to Thomson Reuters. However, many analysts think new home sales hit bottom in January and will increase gradually as the economy gathers steam.

Home sales vary w/ the season, spring being the highest, so the month-to-month comparison is absurd. Year to year, they're down. New sales are down, which explains some of the existing home sales rise. Added together things are worse than anyone hopes for, as inventories still rise. And despite unsupported statements to the contrary, there are no indications of improvement.
06-24-2009 12:05 PM
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Lord Stanley Offline
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Post: #2
RE: Spinning the good news: home sales
Hit bottom? Nothing can hit bottom until your home is only worth the land that it sits on, and the scrap value of the home

/sarcasm yes, but a little truth to that, no?

Also one of the unitended consequenses of such recent low mortgage rates is that many people simply will no longer want to move. Who wants to trade a 4.5% mortgage for 5-6-7% mortgage in the future when you move house?

Low mortgage rates have exacerbated the dearth of home purchases for established buyers. Who can afford the 10-20% down needed on a home when the home value is more than $250,000? I would love to move into a $500,000 house the next neighborhood over, but I get no home purchase tax credit, moving right now increases my mortgage rate, I don't have $50k to $100k in liquidity nor that amount of equity in my home. New home buyers can only do so much to this market, especially right now - the current round of forclosures in many ways is on entry level homes, Jebus help us when home in excess of $350,000 start to become the only homes left on the foreclosure market, everything will probably stall again.
06-24-2009 12:30 PM
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GGniner Offline
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Post: #3
RE: Spinning the good news: home sales
I hope mortgages don't go any farther than 5,6 or 7%

its an interesting economic experiment we've placed ourselves into
06-24-2009 12:31 PM
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DrTorch Offline
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Post: #4
RE: Spinning the good news: home sales
(06-24-2009 12:31 PM)GGniner Wrote:  I hope mortgages don't go any farther than 5,6 or 7%

its an interesting economic experiment we've placed ourselves into

Even those are historically low numbers. But yes, the psychology of moving will be a big factor.
06-24-2009 12:39 PM
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