Existing Home Sales
June Existing Home Sales totaled 4.89mm annualized, 50k more than expected but May was revised down by exactly 50k to 4.72mm so taken together about in line. It is though the 3rd month in a row of gains and its at the highest level since Oct ’08 as both single family and condos/co-ops saw sales gains. Months supply fell to 9.4 from 9.8, the lowest since Dec ’08. The high was 11.3 in April ’08 and it got as low as 3.6 in Jan ’05. The NAR said that distressed sales were 31% of the overall total and said 29% of buyers were first time (helped out by the $8000 tax credit). Prices are down 15.4% but rose to $181,800 sequentially, the highest since Oct ’08 as prime foreclosures rise and lead to higher priced homes for sale, thus skewing the median price higher. The South and the West saw the best sales gains as they are still being influenced by foreclosures. The Northeast and Midwest were up a touch. Mortgage rates are up about 40 bps since the contracts were likely signed on these closings so we need to see what influence, if any, in the next few months that it had on sales.
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July 23rd, 2009 at 3:29 pm
The bursting of the housing bubble helped push the U.S. economy into the worst financial crisis in seven decades. Now the economy is hobbling the recovery of the real estate market.
“Corporate layoffs are forcing more homeowners to miss their monthly mortgage payments and fall into foreclosure. Unemployment, currently at a 26-year high of 9.5 percent, isn’t expected to peak until mid-2010. About one in three homes sold in May was a foreclosure or distressed sale, dragging down the median price to $173,000 _ 16.8 percent below a year ago. Falling prices coupled with new rules for property appraisers have caused many transactions to fall apart or be delayed.”
Although existing home sales notched their third monthly rise in June and prices hit their highest level since October, still I think it is too optimistic to say that the housing market is finally reviving because the uptick you have seen in these months is because of the fact that Americans buy houses mostly in Summer.
I would say that we should wait and watch after 2-3 months.
Read More : http://www.housingnewslive.com.php
July 23rd, 2009 at 11:16 pm
@nov: Correct. The realtors here want say to say things are “good”. And yet unemployment is …
Truth. I have realtor down the block that put his house up for sale. And his wife is 7 mos.
Trust. Fukiyama.
July 24th, 2009 at 5:51 am
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