Existing Home Sales Hit 5 Month High
The National Association of Realtors announced recently that Existing Home Sales, after falling to 10-year low in June, rebounded in July to a 5-month high. The report, which measures the month-over-month sale of previously owned homes, indicated sales of such homes increased 3.1 percent.
Bob Walters, Chief Economist for Quicken Loans, says “Declining home prices have created increased demand for housing, which could help stabilize the housing market. Securing financing in this restrictive credit environment remains a key challenge, however. Fortunately, FHA loans – with less stringent equity and credit requirements – have come into the forefront and are likely to play a leading role in helping the housing market recover.”
What do you think? Is the housing market recovering? Have we hit bottom? Are we "on the way back up"? Tell us what you think by clicking on the "comment" link below and sounding off. As always, your email address will never be published here to protect you from spam or other unwanted email.
Interest Rates: Will the Fed Hike Rates?
Even as they grappled with inflation worries, most Federal Reserve officials at their August meeting didn't believe the Fed's key interest rate was too low given harder-to-get credit conditions straining consumers and businesses alike.
The Fed, at its Aug. 5th meeting, decided to hold its key rate steady at 2% for the second straight meeting. Confronted by problems at every turn — rising unemployment, shaky growth, credit troubles and creeping inflation — the Fed took a gamble that once again the best move was none at all.
Some analysts believe, looking ahead, the next direction for rates is probably up. Fed Chairman Ben Bernanke recently signaled that rates would likely stay at 2% at the Fed's next meeting on Sept. 16, and probably through the rest of this year. Some fear that keeping rates at this level, a four-year low, could aggravate inflation down the road.
What do you think? Will the Fed be pressured into raising rates in the foreseeable future? Or will they play it low-key until after the elections in November? We'd love to hear your opinion. Just use the "comment" link below to sound off on this topic.
New Home Sales Rise: A Welcomed Sign for Housing
The sale of newly constructed homes in the month of July rose 2.4%, according to a report issued recently by the United States Census Bureau. This follows another report issued by the National Association of Realtors indicating that July sales of previously owned homes hit a 5-month high.
Although reports such as these are welcome news for the housing markets, possibly indicating that pent up demand for housing is beginning to express itself, no one seems to be signaling a housing recovery at this point either, as the overlying issues of tight credit guidelines and a substantial inventory of unsold homes continue to plague many market areas.
Home Prices Down 7.6%
The National Association of Realtors (NAR) reported recently that 'Nationwide, the median existing single family home price plunged 7.6% to $206,500 in the second quarter, down from $223,500 in the same period of 2007. The median price represents the point at which half of all homes sold for more and half sold for less.'
A record number of foreclosures helped drive down prices, according to NAR. In fact, foreclosures and short sales accounted for about one third of all existing homes sales.
Now we seem to be getting into a time when the real economy is starting to affect housing markets more. It's a little bit of a contest now.
What do you think? Will lower prices stimulate home sales, or will the slowing economy slow down sales? We'd love to hear your opinion. Just click the comment link below and tell us what you think.
June Pending Home Sales Up 5.3%
The number of pending homes for sale rose in June, a rebound from the previous month.
The National Association of Realtors' Pending Home Sales Index rose 5.3% in June to 89 from a downwardly revised reading of 84.5 in May.
The index remains 12.3% below its level in June 2007, when it stood at 101.4, but it's at its highest point since October 2007, when it was at 89.9.
The number of homes under contract for sale fell more than expected in May, after a surprising spike in April.
Do you think these numbers reflect a possible end to the housing dive? We'd love to hear your comments and feedback. Just use the comment link below and tell us what you think. Your email address will never be published at this site to protect your privacy, even though it is needed in order for you to post a comment. We look forward to hearing from you.
