New home sales jump 7.6% in May

[Cigar]

The housing market got some good news on Monday, as the government reported that sales of new homes rose 7.6% in May.

Sales hit an annual rate of 369,000, according to the Census Bureau, compared with the revised April rate of 343,000. That's up 20% year-over-year, but still a long way from the annual rate of nearly 1.4 million recorded during real estate's boom years.

The sales hike beat expectations. Economists had forecast a sales rate of 350,000 new homes, according to Briefing.com.

The uptick in home sales was in line with other recent positive reports in the housing market. In May, home builders applied for permits to build new homes at the highest rate since September 2008, and mortgage rates hit record lows last week.


http://money.cnn.com/2012/06/25/real_estate/home-sales/index.htm?source=cnn_bin :afro:

[Peter1469]

Some good news. Unfortunately, I think home values, in general still have a way to drop in most markets.

And the inventory of used homes is very high, although dropping.

[Carygrant]

. In May, home builders applied for permits to build new homes at the highest rate since September 2008, and mortgage rates hit record lows last week.



Good , if you have people to move into them after they have been built .
But if many are civil projects for the homeless and unemployed ,that could lead to the planet's first reverse economy .
:rollseyes:

[Mainecoons]

Let's see, a 7 percent increase in a number that has dropped more than 70 percent. Yup, only an ObamaFool could think that was great news.

[MMC]

Wonder if he considered all those going thru the courts that are being put out of their homes now? California and Illnois are leading the way in that little endeavor. Also what about Obama saying Construction workers are waiting to get back to work they just need to pass his jobs bill. Do those Obama stats count too?

[Cigar]

I Love you guys ... such Happy Americans so Happy for America :)

It's so funny. :)

[Mainecoons]

I love ObamaFools. Living with their heads up their asses.

http://money.usnews.com/money/personal-finance/articles/2012/04/10/how-shadow-inventory-hurts-the-housing-market


But February's optimism is fading fast. One of the main reasons for this is what is referred to as a "shadow inventory" of houses, or foreclosed homes that remain on the market. And according to a recent report, an additional 1.25 million foreclosed homes are set to flood the market following a year-long investigation into lending practices.
This is horrible news for the housing market, as it will push prices lower and lower. According to the Federal Reserve Bank of Cleveland, foreclosed homes that have been on the market for less than a year sell for 35 percent below value. If homes remain on the market for more than a year, their price drops 60 percent.
"The shadow inventory remains persistent even though many other metrics of the housing market show signs of improvement," says Anand Nallathambi, president and CEO of CoreLogic, a consulting firm that closely tracks the real estate market. "As we move into what is traditionally the peak selling season for real estate, servicers will certainly be watching closely to see if now is the time to move more inventory out of the shadows."



A shadow inventory explosion? Roger Staiger, an adjunct faculty member of the Johns Hopkins Carey Business School, warns that the numbers cited by the National Association of Realtors are too low. He believes the shadow inventory is going to get much, much bigger.
"I'm predicting another 2 million homes to be foreclosed," says Staiger. "I would say there are about 3 million homes close to foreclosure or in distress, meaning owners are 90 days delinquent on payments."
[See How Buying a Home is Likely to Change (http://money.usnews.com/money/blogs/flowchart/2011/02/09/how-buying-a-home-is-likely-to-change).]
According to Staiger, two factors will contribute to the explosion of the shadow market. The first is a tepid economic recovery. "If you look at wage growth over the last five or six years, it's almost nonexistent," he says. "We are on the way to $5 gas. Things are not getting better. Unemployment is getting better because more people quit looking for jobs."

I know, Cigar. You're a liberal, don't confuse you with facts. :grin:

[Cigar]

I love ObamaFools. Living with their heads up their asses.

http://money.usnews.com/money/personal-finance/articles/2012/04/10/how-shadow-inventory-hurts-the-housing-market





I know, Cigar. You're a liberal, don't confuse you with facts. :grin:

I'm truly sorry your life is so bad and I wish I could say or do something that would make it better for you.

You could probably find a link everyday to support your reality, but my reality is different.

I'm a Home Owner, Investment Property Owner, and Business Owner and the last few years have been great, just like many other documented business, corporations and organizations.

I guess ... some have it and others don't. I suggest that the ones who don't get it, ask the ones who do.

You have a lovely day sport :)

Signed ... Obamafool who's word is obviously better that yours.

It's better to be a Happy Fool than a Bitter Old Fool

[Mainecoons]

In other words, you can't respond factually and once again you've been caught pushing BS that isn't supported by overall reality.

I understand. You confuse your limited reality with the general reality and are in denial about the latter because it is a real world indictment of the people and ideas you support.

[Cigar]

In other words, you can't respond factually and once again you've been caught pushing BS that isn't supported by overall reality.

I understand. You confuse your limited reality with the general reality and are in denial about the latter because it is a real world indictment of the people and ideas you support.

Naaa ... I'm just looking out my window and I don't see what you see. :)

[Mainecoons]

I, I, I. Yep, yer a good liberal. Ya know, ya don't have to look far. You are living in a state bankrupted by your ideas and your government union buddies. But I suppose you are in denial about that too.

http://globaleconomicanalysis.blogspot.mx/2012/04/public-unions-bankrupt-illinois-unpaid.html



Governor Pat Quinn rammed through the largest tax hikes in Illinois history last year. On January 13, 2011, Governor Pat Quinn signed off on a 67% hike in personal income taxes and a 46% hike in corporate taxes.

The result is not what the governor thought. Businesses have fled, more have threatened to leave and Quinn responded with sweeteners. Moreover, Illinois pension plans are still the worst funded in the nation, and the state is still struggling to pay bills.

Bloomberg reports Illinois ‘Treads Water’ as Unpaid Bills Top $9 Billion (http://globaleconomicanalysis.blogspot.com/2011/01/business-owners-blast-il-tax.html)

Illinois’s backlog of unpaid bills has risen to more than $9 billion because of pension costs and falling federal aid, leaving the state “essentially treading water,” Comptroller Judy Baar Topinka said.

While revenue grew from higher personal and corporate taxes, “Illinois’ financial position has not improved,” Topinka said in a report today. The combination of unpaid bills to vendors and Medicaid obligations, estimated at $8.5 billion in January, means payment delays will persist, according to the report.

While tax increases boosted revenue by about $7 billion, or 3.9 percent in the first three quarters of the fiscal year that began in June, the gains were undercut by the loss of federal funding and financing of pension contributions directly, rather than through bonds as in the past two years, Baar Topinka said.

Democratic Governor Pat Quinn has proposed a voluntary 3 percent increase in pension contributions from current employees and a cut in cost-of-living increases for retirees.

“Bold action” is required to save the retirement systems, the governor told reporters in Chicago April 20. In fiscal 2010, Illinois had the lowest-funded state pension in the U.S., with assets equal to 45.4 percent of projected obligations, according to data compiled by Bloomberg.

[MMC]

Yep 75yrs of Failed Democratic Leadership. Now all know what their states will look like in 75yrs. :angry:

[Mainecoons]

Hey Cigar, how did you like that fat tax hike so you could continue to grossly overpay and overstaff your unionized public "workers?" Did you get that part about business leaving your state? Hmm, maybe they look out their windows and see what is really going on.

Or are you going to now tell us you don't pay taxes either. Could be, on the minimum wage that the DNC boiler room pays you to come and make a fool of yourself on conservative boards you probably don't pay a lot in taxes. In fact, you might be able to qualify for food stamps. :grin:

[Cigar]

Hey Cigar, how did you like that fat tax hike so you could continue to grossly overpay and overstaff your unionized public "workers?" Did you get that part about business leaving your state? Hmm, maybe they look out their windows and see what is really going on.

Or are you going to now tell us you don't pay taxes either. Could be, on the minimum wage that the DNC boiler room pays you to come and make a fool of yourself on conservative boards you probably don't pay a lot in taxes. In fact, you might be able to qualify for food stamps. :grin:

Your intelligence just overwhelms ... me :)

[Mainecoons]

Yeah, based on what you're showing us here, that's pretty easy to do.

:grin:

[reversemort]

New house sales are increasing a head of expectations.This is great news for our economy.

http://mortgagereverse.org/mortgage-ratereverse.html

[Micketto]

New house sales are increasing a head of expectations.This is great news for our economy.

http://mortgagereverse.org/mortgage-ratereverse.html


If you just sign up to advertise.... you shouldn't make your ID the name of your organization....

(Besides.... it confuses Cigar.... he thinks a reverse mortgage is when the bank pays you to live in a house)

[simpsonofpg]

Let's see, a 7 percent increase in a number that has dropped more than 70 percent. Yup, only an ObamaFool could think that was great news.

I know what you mean but up 7% if better than down. Personally I don't thinki we have hit the bottom yet.

[truthmatters]

wow some really want to see this country fail

[ptif219]

This thread is from last year it may be different this year

[zelmo1234]

The inventory has dropped dramatically, and forclosuers are down.

The problem is still home values are low bat are starting to rise! Banks are a little more fussy on what they will take for one of their homes nad short sales are getting a little harder!

So there is some good news on the houseing front! If you are going to get back into the realestate funds, you might want to hurry, as the national builders are starting to ramp up!

[simpsonofpg]

How many are in the sub-prime catageory?

[zelmo1234]

How many are in the sub-prime catageory?

A very high percentage of the homes that people are loosing are Sub Prime! and upside down!