U.S. Seeing a 'Second Surge of Home Sales'?
Yesterday the National Association of Realtors released its pending home sales index for February, and the report indicates that the national real estate market was doing surprisingly well a couple months ago. The index rose 8.2 percent nationwide in February as compared to January, and it was up 17.3 percent year-over-year. Here in the Northeast…
Yesterday the National Association of Realtors released its pending home sales index for February, and the report indicates that the national real estate market was doing surprisingly well a couple months ago. The index rose 8.2 percent nationwide in February as compared to January, and it was up 17.3 percent year-over-year. Here in the Northeast the index was up 9 percent over January and 18.9 percent over February 2009. According to the Times, analysts had predicted the index would stay flat in February. Lawrence Yun, chief economist for NAR, said the index’s jump may signal the early stages of a second surge of home sales,” with the first-time buyer tax credit bolstering the market as it did last fall. Although it’s a bit of good news, home prices nationally are generally static, and foreclosures continue to rise.
Sharp Rise in Home Sales in February [NY Times]
Pending Home Sales Index [NAR]
Index image from NAR.
“The economy is starting to bottom out.”
That’s just the first dip. The bottom for the second dip will be way down there somewhere.
***Bid half off peak comps***
Rental market is stronger then it was this time last year. I guess this is because of Obama’s smoke and mirror stimulus and not because the economy is actually getting stronger?
The economy is starting to bottom out. The housing market?… not very likely. NYC housing? Fugetaboutit!
Mortgage delinquencies? – through the roof. New Condos coming on the market? 20,000 by this time next year! Sales were up a little, but at lower prices. Prices will continue to drop as bargain hunters` sop up the`excess supply at ever lower prices.
I am still long the US stock market, and still waiting to buy a home. When I see home prices stabilizing, I will buy. In the meantime, my capital is more efficiently placed in APPRECIATING assets.
“That’s when all hell breaks loose and the Obama bread-lines spring up all over the country.”
No, that only happens when GDP drops -10%. Oh wait! Obama is borrowing and spending that amount as a percentage of GDP! 1930’s redux.
***Bid half off peak comps***
The “double-dip” is coming. Take off the blindfolds. Nothing is getting better. It’s all smoke and mirrors until the trillion dollar government stimulus give-aways run out.
That’s when all hell breaks loose and the Obama bread-lines spring up all over the country.
Good news. Can’t crash without volume.
“foreclosures continue to rise”
Not as fast as preforeclosures. Pent up supply.
***Bid half off peak comps***
Ah yes, the 97.7 pending sales index is lower than ’08, ’07, ’06, ’05… I can’t find any earlier detail. I imagine someone with a BB terminal can pull it up. Also, the huge divergence between pending and actual existing home sales continues to increase, so sound/fury/nothing.
I thought Joe was younger.
^^
and by “we’re” above I mean the S&P 500…