Existing Home Sales Hit 15-Year Low

[Tilted]

Existing Home Sales Hit 15-Year Low; Housing Market Weakens

The National Association of Realtors said sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest level since May 1995. June's sales pace was revised down to a 5.26 million-unit pace.

The July data was expected to be very bad, but it was even worse than expected - much worse.

 

[Dakota]

I heard last week the report was going to be terrible and they also believe we are going to see huge dips in the stock market by the end of the week.

 

[Larry Gude]

This is all well and good, only in the opposite. However, add into that the great unspoken these days; commercial real estate.

Add to that, international cluelessness over what and when as to ObamaCare.

Add to that concerns over taxes rising in January.

Add to that Israel on the threshold of putting Iran out of the nuke business.

I guess Obama is right to go play golf. His work is done. :shrug:

 

[Tilted]

Housing Double Dip Is Not Just Tax Credit Hangover

 

[Tilted]

I heard last week the report was going to be terrible and they also believe we are going to see huge dips in the stock market by the end of the week.

The equity markets gagged when the numbers hit, but they've actually held in there pretty well since. I guess we'll see what happens, but I'd describe the markets as shaky right now - not sure what to do, but 'perched' close enough to the edge to drop quickly if they look around and find things leaning in the wrong direction.

 

[Larry Gude]

The equity markets gagged when the numbers hit, but they've actually held in there pretty well since. I guess we'll see what happens, but I'd describe the markets as shaky right now - not sure what to do, but 'perched' close enough to the edge to drop quickly if they look around and find things leaning in the wrong direction.

Where else they gonna go? We're in a kind of hang together or surely hang apart mode. Just so long as no one makes a mad dash for the exits.

:shrug:

 

[Tilted]

Where else they gonna go? We're in a kind of hang together or surely hang apart mode. Just so long as no one makes a mad dash for the exits.

:shrug:

Except that there's a lot of money to be saved (or made, for that matter) by being one of the first to head for the exits.

 

[Larry Gude]

Except that there's a lot of money to be saved (or made, for that matter) by being one of the first to head for the exits.

aka 'the fun part'

 

[chernmax]

This is what happens when you stack an administration with 100lb heads and no real job or business experience!

 

[foodcritic]

Housing Double Dip Is Not Just Tax Credit Hangover

This has been a point of mine for some time. All of these artificial "tax credits" for new home, energy eff. appliances, cash for clunkers etc. This is the government meddling in a system that they have no clue being in.!!

 

[Dakota]

This is what happens when you stack an administration with 100lb heads and no real job or business experience!

Perhaps Obama should just take another vacation and forget about it!

 

[Gilligan]

Where's Joe Biden??..I need to hear more about the 'Recovery Summer' message he was supposed to take on the road. Is it summer yet??

 

[Tilted]

Oh boy - the new home sales data for July is out today, and they're down 12.4%. That may be an even worse indication than existing home sales being down 27.2%.

New home sales are counted when the contract is signed, not when it is closed on. To get the homebuyer tax credit, a home had to be under contract by April 30th, so, for new home sales, the dramatic post-credit drop off should have started in May. The July numbers reflect a significant drop off from the drop off.

Even though the home had to be under contract by April 30th, it didn't have to be closed on. So, the existing home sales number might still have been benefiting from the credit in May or even June. Existing home sales are counted when they close.


EDIT: Add a link to an article - US New Home Sales Sink to Lowest Pace on Record

 

[chernmax]

Where's Joe Biden??..I need to hear more about the 'Recovery Summer' message he was supposed to take on the road. Is it summer yet??

The only thing Recovering are the Obama Punk Drunk fools that are starting to sober up!

 

[Gilligan]

And did I just read somewhere that Freddie and Fannie are the only game in town for mortgage origination?? I can't find the story now..but if I recall it correctly, their percentage of the market went from somewhere around half when the meltdown started to now being almost the only entities making any home loans at all.

Think about that..they were also exempted from the new financial regs that affect all other banks and financial institutions...they are quietly recieving huge influxes of bailout cash with no end in sight..and so on.

What kind of monster has the gummint created here?

 

[Tilted]

And did I just read somewhere that Freddie and Fannie are the only game in town for mortgage origination?? I can't find the story now..but if I recall it correctly, their percentage of the market went from somewhere around half when the meltdown started to now being almost the only entities making any home loans at all.

Think about that..they were also exempted from the new financial regs that affect all other banks and financial institutions...they are quietly recieving huge influxes of bailout cash with no end in sight..and so on.

What kind of monster has the gummint created here?

What you read probably related to guaranteeing or owning mortgages, rather than originating them. Fannie and Freddie, in one way or another, owns or guarantees the bulk of American home mortgages. In essence, what happens is others originate mortgages and then sell them to Fannie or Freddie, which then bundles them and resales them.

 

[Gilligan]

What you read probably related to guaranteeing or owning mortgages, rather than originating them..

You are correct..I had it exactly backward. Still looking for the link and story though..