Posted on 08/24/2007 11:07:19 AM PDT by Hydroshock
Sales of new U.S. homes unexpectedly rose 2.8% to an 870,000 annual sales pace in July, reversing two months of declines, and inventories eased, a Commerce Department report showed Friday.
Analysts were expecting new-home sales to fall 1.4% to an 820,000 sales pace. New-home sales in June were revised to an annual rate of 846,000 from the previously reported 834,000 rate.
Despite the surprising strength, some economists said the housing outlook remains grim.
"This is July, before the freezing of the market," Mark Zandi of Moody's Economy.com said on CNBC. "So I'm sure we're going to see much weaker numbers for August, September and October. The housing market is going to go down a whole other level in the next few months."
Still, Zandi said the market is nearing a bottom.
"In terms of sales, I think the bottom is going to be the end of this year," he said. "In terms of contruction, I don't think there'll be a bottom 'til the beginning of 2008. And in terms of prices, I think it won't be until the end of '08. And that's nationally. Of course, in California and Florida--the markets that are in disarray--the bottom is well into 2009."
Meanwhile, homeowners across America were more likely to report declines in their home values than at any time since 1992, according to the The Reuters/University of Michigan Surveys of Consumers for August released on Friday.
(Excerpt) Read more at cnbc.com ...
Drive-by mantra:
“(Postive news here), But Outlook Remains Grim”
Par for the course for a vulturegram.
The basis for our economy can’t be centered on housing...so grim to me doesn’t mean bad, as long as it doesn’t cause wide ripples in our economy.
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