December Brings Better Housing News, But Still No Signal of True Bottom

I like the headline from the Las Vegas Review Journal (ReviewJournal.com - Business - December brings dramatic increases in Las Vegas home sales), but the article has several facts that I find which still point to further weakness.

But first the good news: December sales were almost 3 times the number for December 2007 and the 4th straight month of big increases. The December number also beat November by 14%.

Now for the negatives:

• Median price continues to fall off $11,000 from November to $175,000.
• Available inventory is staying stubborn at about 22,000. The seemingly limitless supply of foreclosed properties continues to hit the market as homes are being sold.
• Bank owned and short sale properties are 72% of all listings. 75% of all closed sales are for bank owned properties.

It is obvious that buyers believe there is good value in bank owned properties and sales are strong. The negative economic news does not seem to be affecting buyers. Yet it is hard to see any pricing strength until the flood of foreclosures hitting the market slows to a trickle, stream or even a small river. I am still looking for a couple of months of price stability to signal the true bottom of this market decline.

Comments

[xmplary:]

Foreclosures increased in Georgia xmplary.blogspot.com/2...

Jan 13 12:09 PM

[BHMTom:]

I can only pray people in power read this stuff.
Want to solve the housing quagmire and look like a savior? Mr. Obama PLEASE lift,... ALL...the capital gains tax on any home bought over the next 3 months. Yes there is no money to be lent, but the housing supply would dry up with in....say how many days? 4-7 if that. I went to an auction in the Birmingham area and saw a book full of $10K and less homes being sold on the steeps. I could have bought a block of homes with my home equity, but home after home went with out a bid. The nice $250K and above got bids, but the banks retracted the amount and sitting on em. Mexican stand off !

Jan 13 12:15 PM

[Freedoms Truth:]

"Mr. Obama PLEASE lift,... ALL...the capital gains tax on any home bought over the next 3 months. "

Obama acting like a tax-cutting conservative Republican? That WOULD be a miracle!

Jan 19 02:07 AM