Posted on 12/02/2010 7:34:28 AM PST by SeekAndFind
Headline: Up 10.4% for October, with the index rising to 89.3%.
Expectations: Index expected to fall 1%.
Analysis: Last month the pending home sales index fell 1.8% (for September).
From Realtor.org:
Lawrence Yun, NAR chief economist, said excellent housing affordability conditions are drawing home buyers. “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” he said.
“More importantly, a return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery,” Yun said. Recent loan performance data from Fannie Mae and Freddie Mac clearly demonstrates very low default rates on recently originated mortgages, much lower that the vintages of 2002 and 2003 before the housing boom.
(Excerpt) Read more at businessinsider.com ...
... unexpectedly
Remember....realtor.com has their profession to watch over...I don’t trust websites that protect their members through possible false stats.....
Cap gains taxes skyrocketing next year might have something to do with people being more willing to accept a loss on their property.
If the world was going to Hell in a handbasket, Lawrence would report that, as he had expected, the market is recovering and home sales in the warmer environments have significantly improved the market.
Larry opines...
"Now is a great time to buy a home! Contact a REALTOR today
NAR ain’t trying to fool the public, necessarily, they are trying to fool us the paying members. First of year dues coming up, they are afraid more will decide to not renew because SALES ARE near ZERO.
Sure agree with ‘ya......
Lies... liars... and the lies they do tell.
LLS
how many are they listing that are really refinancing?
Just had my home reappraised for a refinance. Value has dropped significantly. I highly doubt that there is a ‘resurgence’ in housing at this point. If sales are up at all its likely because people are desperate to sell and affordability has increased significantly. Also, with a flat economy interest rates have plummeted even further, so it’s a good time for anyone with the cash to buy. None of that means the economy is rebounding.
My experience from the last 30 years spent in the real estate industry is that the NAR cooks the books regularly. Never admit anything negative, even when it is reality. The NAR is a useful reference site because most people know so little about what is truthfully going on in the industry, and Americans will believe ANYTHING that makes them feel better, even for a minute.
WHERE, pray tell, is this ‘improving job market’? There are fewer job losses because there aren’t any jobs left to lose.
The bulk of the purchasers are investors who have the banks so freaked they have made it virtually impossible for a potential resident-purchaser to close a deal. Even a cash-in-hand purchaser is suspect. The same bank that will not look at a 95% offer today may reduce a list price 10% next week. Pure lunacy reigns supreme.
But, Newt’s got it all figured out; all of the out-of-work Americans, NAFTA victims, who are now homeless only need to go back and learn what the founding fathers prescribed in the Constitution, re-educate and re-train themselves, and the blue birds will once again fly and the 50’s will magically re-appear. ARRRRGH!!!
Lots of homes still for sale. The roads are quiet in the a.m. and there are no sounds of auto hammers. When I hear those sounds that wake me up, then I’ll know for sure the housing market and jobs are improving. The only thing I hear early in the a.m. is birds and distant barking. I still see closed real estate offices and mini malls. Bottom line, the economy hasn’t shown any improvement.
No, but clearing of inventory is a good step to restoring stability to the housing market.
The stock market is up huge, with more to come. People have cash and are wiling to spend it again.
“Pending” being the key word. What’s happening in my part of the country (FL) lots of sales fall through, mainly becauuse of appraisals coming in lower than is needed to finance the home.
That probably wouldn’t be the case with a foreclosure though, might be, but probably not.
bump
New normal. People don't necessarily have any more cash than they did before, they're just adjusting to whatver they have now. Moreover, people are also getting used to 10% unemployment, while at the same time beginning numb to their own employment uncertainty. The result, they're starting to live their lives like they did before the economy went south.
Just like France and other parts of Europe in the last two decades, the misery (high unemployment, tighter credit) becomes more tolerable and "normal". So, normal economic behavior returns. It's a new kind of "irrational exuberance".
as we head into 2011 and massive debt on commercial loans begins coming due on properties that are now under water the economy is about to take another knockout blow.
New normal. People don't necessarily have any more cash than they did before, they're just adjusting to whatver they have now. Moreover, people are also getting used to 10% unemployment, while at the same time beginning numb to their own employment uncertainty. The result, they're starting to live their lives like they did before the economy went south.
Just like France and other parts of Europe in the last two decades, the misery (high unemployment, tighter credit) becomes more tolerable and "normal". So, normal economic behavior returns. It's a new kind of "irrational exuberance".
Good analysis. New normal - "jobs created or saved" - New speak for neo-socialists.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.