Posted on 09/25/2006 5:42:41 PM PDT by MeneMeneTekelUpharsin
Prices of existing homes fell for the first time in 11 years and the backlog of available homes for sale was at its highest since current measures began, underlining the significant slowdown in the housing market. Existing-home sales slipped 0.5 per cent to an annual rate of 6.30m units in August from a level of 6.33m July, according to the National Association of Realtors. They were 12.6 per cent down on the year before.
Economists had expected a fall in sales to 6.2m, following a sharp 4.1 per cent decline in sales in July. “The housing market continues to weaken, but the deterioration in this report was relatively modest,” said John Ryding, economist at Bear Stearns. The Federal Reserve has recently justified its pause in interest rate rises by saying that weakness in the housing sector will put the brakes on growth and help slow down inflation. The latest numbers suggest that the central bank may soon start lowering rates. ‘’Housing is in trouble, the economy is a lot weaker than people think and the Fed will ease policy much faster than what is currently priced by markets,’’ said Michael Kastner, head of fixed income at SterlingStamos.
The housing data pulled the yield on the two-year Treasury note down to about 4.65 per cent, its lowest level since March. David Lereah, the NAR’s chief economist, said home sales appeared to be levelling out after a sharp drop in July. “After a stronger-than-expected drop in July, the fairly even sales numbers in August tell us the market is at a more sustainable pace,” he said. The decline follows weak data on housing starts and building permits in August.
The median existing home price was $225,000 in August, down 1.7 per cent from a year earlier - the first price fall since 1995 and the second biggest decline on record . “This is the price correction we’ve been expecting – with sales stabilising, we should go back to positive price growth early next year,” Mr Lereah said. Housing inventory levels rose 1.5 per cent to a 7.5 month supply at the current sales pace, compared with 6.3 months in July, and 4.7 months at this time last year. The inventory was at its highest since since condominiums were added to the survey in 1999. Existing home sales account for about 85 per cent of the housing market. They have fallen every month since March.
When they start cutting the Fed rate we will likely see a start market rally of 5-8%.
hey...where's your ping list ?
doom & gloom - ping !
sky fell and is still falling - ping!
trillions lost in equity - ping!
pimp my ARM - ping!
we're all doomed - ping!
increase in homeless right around the corner - ping !
100 year mortgage term - ping!
Don't do the ping list thing. If people want to read it, fine. If not, fine. It's just information which one needs to sift.
Fast Facts
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06: High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.) Mortgage rates - week ending 9/14:
30-yr. fixed: 6.43%; Fees/points: 0.5%
15-yr. fixed: 6.11%; Fees/points: 0.4%
1-yr. adjustable: 5.60%; Fees/points: 0.7%
(Source: Freddie Mac)
CAR= Cal Assoc of Realtors
This is mostly a NE US development. Who want's to move to the NE ?
got it
bookmark for later
Where is this big inventory of available homes? Not in Seattle where prices continue to flatline and the bidding wars continue.
Thought you might like to know, a good friend of mine in Pflugerville, Texas was extremely upset today. Realtor suggested they drop the price of their house $20,000 in order to get it to sell after months on the market. Just another little tidbit for you.
I'll be buying my very first house in a few months. So much to learn, so little time.
I'd just like YOU to know, a very good friend of mine in Pflugerville, Texas was extremely giddy today. Realtor suggested they raise the price of their house $20,000 in order to get the most profit from the sale. Just another little tidbit for you.
Predictable reaction and definitely guilty now. Thanks for validation of what I thought you were doing. I KNOW my information is valid or I wouldn't have posted it. Now I know what you are and what you're doing. You'll pay, one way or another.
I know the same thing about mine.
You'll pay, one way or another.
Spare me your psychotic little threats.
It's not a threat. I never threaten anyone.
Well then, I'll thank you to spare me your psychotic little posts. You make a lot of those.
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