Pending Homesales down 14% from Last Year
Pending home sales were down 14% from last year and down 4.7% from last month.
Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of Realtors®.....
Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. “The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” he said.
So in one paragraph, the NAR expects a recovery during second half of the year. But in the next, it's begging congress for help. I guess this is the new socialist world the fed and the government has created. Privatize gains and socialize risk. I did not see the NAR arguing that home prices were too high when they were going up. Now they are asking congress to keep them artificially high.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the current market offers immediate benefits and long-term value for many buyers. “Home buyers are getting a great deal right now,” he said. “Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009.”
Higher mortgage rates will effect the sellers. They will have to bring down the prices more! Morons!
“The speed at which home prices has declined in a few select markets is unprecedented, but the large price declines in those areas have enticed bargain hunters back into the market,” Yun said. “Interestingly, there have been reports of multiple bidding after the large price cuts, so it is possible that most of the price declines have already occurred in those markets.”
If you had a penny everytime NAR saw a bottom in housing, you would be a millionaire.
The aggregate median existing-home price is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.
Once again, in one paragraph they talk about interest rates going higher. And in another they talk about home prices rising. As I have said before, with the labor markets in the dumps, and so many issues with mortgages, I am not sure how they forecast rising home prices.
http://www.realtor.org/press_room/news_releases/2008/home_sales_vary_then_rise
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