Posted on 06/29/2015 10:19:18 AM PDT by Brad from Tennessee
WASHINGTON--Contracts to buy previously owned U.S. homes rose to their highest level in just over nine years in May, in a further boost to the housing market and the broader economic outlook.
The National Association of Realtors said on Monday its Pending Home Sales Index, based on contracts signed last month, increased 0.9 percent to 112.6, the highest level since April 2006. Contracts have now increased for five straight months.
Pending home contracts become sales after a month or two, and last month's increase pointed to further gains in home resales after they hit a 5-1/2-year high in May. Economists had forecast pending home sales rising 1.2 percent last month.
"The recent trend suggests that we will see continued strength in resales in the months ahead. However the current low inventory levels, which are placing upward pressure on home prices, remain a downside risk," said Derek Lindsey, an analyst at BNP Paribas in New York. . .
(Excerpt) Read more at reuters.com ...
Yep....one of the homes in my subdivision whose “owner” walked away from three years ago just got sold. The new guy got it for a song.
Just sold my home. I had an offer above my listed price within 4 hours after the property hit the multiple listing. Needless to say I accepted that offer.
If I understand correctly, this sounds like the abandoned(?) homes in Detroit that were selling for chicken feed.
I wonder how many are sub-prime loans? never fear, just keep that debt train rolling. it will never stop here!
Excellent info, at the link you posted.
One point made is all of the new FannieMae (govt) loans being made...with qualification requirements going back to the lax standards of the pre-housing bubble burst. In other words, folks who don’t, er, can’t work can easily qualify...and, should something happen where they can’t pay off their loan...We the Taxpayer get left holding the bag.
Another point made is that many of these so-called new housing *permits* are actually for multi-family housing units...and, that we’ve become a nation of renters.
This would tie-in well to my theory that the govt is turning a number (25% +) of multifamily units apartments into Sect 8 housing. It’s less easier to trace or track, yet it accomplishes their goal of moving folks out to the suburbs, from inner cities.
Again, it’s just my theory...I have no proof that this is happening. Just a gut feeling.
Does anybody know if funding from lawless Obama’s unconstitutional Stimulus Package is behind these home sales, possibly timed to help Democrats in 2016 elections?
There goes part of your property value as appraisals are based on recent comparable sales. The surprising thing is, that in certain locales, existing home and upscale home construction is booming. Is the economy actually strong in certain regions or is this 2007 redux?
My neighbor had been trying to sell hers for the past 12 years, and just recently it finally went to auction and got bought within weeks by an investor who plans to flip it. The investor got it for around 10-15% below market I would guess.
The banks have been sitting on a huge inventory of properties for years now, as they didn't want to trash the whole market by dumping them all at once... and I think they're finally starting to step up the process of unloading more of that inventory.
Just curious, did you sell it at a price above 2008 levels?
Bleep on local news today that single dwelling home sales as well as new auto sales are down and both older and younger people are turning to the rental market for both. Just stated as a fact with no supporting evidence or details.
Two homes in block behind mine just went on the market. Said they want to sell while our local market is up. Both families going to take profits and move to and build in the Hill Country in Texas away from the cities. Both homes priced at least $40,000 over what owners originally paid. Do expect them to sell for at least their asking price.
Just crazy right now.
Dixie?
That sounds like what’s happening in our neck of the woods. The pricing and where folks are moving to.
Have you noticed all of the CA plates, lately? So many, just within the last two months.
I spoke to a Reator, Saturday night, who said 90% of his buyer base are CA’s. Yikes!
That’s not what I’m seeing here. I live in a pretty good area. Houses in my neighborhood are for sale, but they’re all sitting on the market for months and months. Have yet to see one actually sell. Maybe the lower end market is moving better.
I’ve bought three homes that were abandoned for several years. I’ve paid an average of $30k and spent an average of 20k putting them in rentable shape. But they sold just a few years ago for roughly 85k, 120k and 105k. I just looked at one that is in rentable shape, which is unusual as it has everything still there. It sold several years ago for 105k and the current asking is 53k.
God bless you. You are rehabilitating long-neglected homes into something livable again.
At one point I thought the remedy would be for the feds to use the “stimulus” to buy up abandoned houses, demolish them and then sell the empty lots by lottery.
“At one point I thought the remedy would be for the feds to use the “stimulus” to buy up abandoned houses, demolish them and then sell the empty lots by lottery. “
That was an actual proposal. During the 1930’s the government bought and destroyed tons of wheat and millions of pigs to raise the price of wheat and pork. There is nothing so dangerous as a liberal in charge of an economy. This is how we got cash for clunkers and Obamacare.
[That was an actual proposal. During the 1930’s the government bought and destroyed tons of wheat and millions of pigs to raise the price of wheat and pork. There is nothing so dangerous as a liberal in charge of an economy. This is how we got cash for clunkers and Obamacare.]
One year where I live either Hoover or FDR bought the entire Tennessee cotton crop on the bush and burned it. This was okay for the farmers but the workers who usually harvested the cotton starved.
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