U.S. Homes Sales on the Rise
Is the national real estate comeback for real or just a head-fake? Bloomberg reports a 3.6 percent gain in the index of signed purchase agreements, marking five months, as of the end of June, of increasing contracts to buy previously owned homes. While this is good news, economists warn that we’re still far from a…
Is the national real estate comeback for real or just a head-fake? Bloomberg reports a 3.6 percent gain in the index of signed purchase agreements, marking five months, as of the end of June, of increasing contracts to buy previously owned homes. While this is good news, economists warn that we’re still far from a sustained recovery: unemployment is still on the rise, estimated to reach 10 percent by 2010, and personal incomes are decreasing. Economist David Sloan told Bloomberg: It’s a modest recovery, however these numbers are exceeding people’s expectations.
Pending Sales of Existing Homes in U.S. Surge 3.6% [Bloomberg]
Photo by Joe Cawley
“People buying in this market will have a profit in 3-5 years, most definitely within 5.
Discuss.
Posted by: daveinbedstuy at August 5, 2009 10:24 AM”
Nominal or real?
What do Brownstoners consider a “subprime” neighborhood in Brooklyn? I still think the housing prices seem super inflated in Clinton Hill for ex.
Other good news for NYC housing market:
http://www.myfoxny.com/dpp/your_money/090804_NYC_Foreclosures_Drop
Antidope, yes, certainly, there are a lot of regular home buyers too looking for a cheap place. But it’s not easy for them to compete against the flippers offering all cash and a sure close.
Flippers: A lot of the “uninhabitable” houses in Brooklyn are bought by professional companies with all cash, then rehabbed. I have met them and seen the work. I have read this is also the case nationally. These houses can only be purchased with all cash or a construction loan. No bank will give a regular mortgage for them.
Antidope, agree completely about the “rising price” environment factor. I don’t quite understand it. Here in Brooklyn these companies seem to be trying to sell for pre-crash prices. A guy I spoke with who does it for a living was buying houses for around $300,000 and he claimed to have sold a three-family in March or April (we spoke in May) around Atlantic and Saratoga for about $500,000 or $550,000 or so (I forget the exact amount).
This is one of the factors that leads me to think prices are going back up in these subprime areas of Brooklyn. Closed sale prices are all over the map. You have “uninhabitable” houses selling for $200,000 to $300,000, other places just sitting on the market at $400,000 or so, and a smattering of properties closing for $600,000.
DIBS, I agree with you and that’s because I expect to pick up something pretty cheap relative to the current mkt
the uptick is from foreclosures under 250,000. That market is real strong.
Flippers? How do you figure?
Flippers can make money in a rising price environment. That doesn’t seem likely soon.
More likely, the tax credits, low interest rates and government supported mortgages are allowing first-time buyers into the market (who were previously priced out). These folks are not likely to be flippers.
It is what it is. The economy sucks but home buying is up slightly nationally. The reason for this is because prices are so low in subprime areas — including in Brooklyn. Many of the people buying are flippers. La plus ca change, la plus c’est la meme chose.