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Mar. Pending Home Sales: +5.1% to 94.1 vs. +1.7% expected, +2.1% prior, -11.4% Y/Y. "Based on...

Mar. Pending Home Sales: +5.1% to 94.1 vs. +1.7% expected, +2.1% prior, -11.4% Y/Y. "Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5%-10% this year," NAR's Lawrence Yun says.
Comments (8)
  • Harry Tuttle
    , contributor
    Comments (2221) | Send Message
     
    What was the name of Saddam Hussein's minister of information?
    28 Apr 2011, 10:08 AM Reply Like
  • youngman442002
    , contributor
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    ongoing job creation....where..in India...
    28 Apr 2011, 10:17 AM Reply Like
  • realnumberz
    , contributor
    Comments (44) | Send Message
     
    5-10% my azz. Nice way of twisting a market that continues to skid downward. Housing market inventory is increasing everyday and easily out weighs any kind of mystical rise in sales. If we see a 100% increase in new listings y/y a 5-10% rise in sales y/y doesn't mean a whole lot does it? Most renters aren't savers, most homeowners are either under water or at break-even with home equity, and banks have gone back to stricter lending guidelines (where they should have been all along). With a market flooded with inventory, who's buying? At the current rate of purchases to inventory it will be many, many years before we see any type of stability in the housing market.
    28 Apr 2011, 10:57 AM Reply Like
  • CharlieM
    , contributor
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    realnumberz,
    Back in the late 80s and early 90s we had a housing/condo glut here in Dallas thanks to Danny Faulkner and his ilk. It wasn't until the property taxes had finally gone into collection and banks had taken over the properties that this changed. How did it change? Unwanted, empty and half completed structures were destroyed and the realestate was used for other purposes. Everyone involved took a hit and housing values suffered for several years during and after this. Our only way out of this mess may be to adjust inventories by taking the losses and removing the inventory. As this inventory ages the recovery of costs will become less and less in time.
    Your thoughts on this?
    28 Apr 2011, 11:48 AM Reply Like
  • realnumberz
    , contributor
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    Difference in the inventory today is that it's wide spread made up of not just single family homes/condo's in a city or state, it's an accumulation of de-valued residential, commercial, and industrial properties across the nation. Knocking down condo's to build for highest best use i.e. a strip mall or commercial structure isn't going to work this time and not even close to being feasible. At issue is the nations wide loss of savings that folks thought they had to fall back on in the form of home equity. Municipalities and counties who collect taxes aren't pulling the plug on delinquent owners and banks aren't foreclosing at a rate that would perpetuate a bottom. I'm convinced that if we had let the banks "fail", we would already be on the road to recovery. Yes, it would have been painful, but after the dust settled at least we would know where we are. Right now, it seems that everyone is in the wait and see mode. Banks are slowly and reluctantly pushing out foreclosures hoping, like our government, that the values will increase before they have to show their books again. While the few buyers out there are waiting for even deeper discounts for fear they'll "pay too much". The prolonged cheap interest rates have molded us into "cheap" buyers instead of value buyers. Push the rates up and I guarantee you'll start to see real estate move. We're in agreement that inventory removal is the key, but I don't think we'll be able to get there by the blade of a bulldozer. BTW, today in our Multiple Listing Service our new listings/sales is at 6:1. I think we're going to need a bigger bulldozer...
    28 Apr 2011, 01:49 PM Reply Like
  • CharlieM
    , contributor
    Comments (150) | Send Message
     
    realnumberz,
    Thank you for your reply on this. I agree that letting our banks "fail" would have caused a great deal of pain. BUT, as our society has become so unaccustomed to painful times we have created an even bigger mess to endure for a longer period.
    I have often times thought back on Nixon's times of isolation. I wonder what would happen if we drew back and imposed a little fairplay isolationism? Countries that have enjoyed economic growth and prosperity on the ability to trade here without tarriffs they place on imports we send back would have an even harder time wouldn't they? Why is it we do not try to balance trade with tarriffs? That would help to recover this deficit we have and would bring jobs back here as we would be better suited to take care of ourselves and not send our monies overseas.
    28 Apr 2011, 02:55 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    Where are our housing cheerleaders?
    28 Apr 2011, 11:27 AM Reply Like
  • kmi
    , contributor
    Comments (3967) | Send Message
     
    Anyone have data on residential apartment rents by area?

     

    I don't believe that rents are going up. In my area I can't charge more than I did 3 years ago.
    28 Apr 2011, 12:06 PM Reply Like
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