Posted on 05/30/2012 7:43:30 AM PDT by mykroar
Contracts to purchase previously owned homes unexpectedly fell in April to a four-month low, undermining some of the recent optimism that the housing sector was touching bottom.
The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed in April, fell 5.5 percent to 95.5, its lowest level since December.
Economists polled by Reuters had expected signed contracts, which lead existing home sales by a month or two, to rise 0.1 percent after a previously reported 4.1 percent gain.
The housing market has been one of the U.S. economy's weakest links as it recovers from the 2007-09 recession, but many economists think the sector will actually add to economic growth in 2012 for the first time since 2005.
The report on pending contracts in April could temper some of that optimism.
Millions of Americans owe more on their homes than they are worth, making them more cautious about spending and holding back the economic recovery.
After a debt-fueled housing bubble, prices have fallen about a third since 2006 according to some measures and the housing market continues to be saddled with an oversupply of unsold properties.
There have been some signs that the deflation in prices could be bottoming out. On Tuesday, the S&P/Case Shiller composite index showed home prices rose for the second month in a row in March.
But Wednesday's report showed contracts fell 12 percent in the western United States and 6.8 percent in the South. Contracts edged lower in the Midwest and rose slightly in the Northeast.
The National Association of Realtors downplayed the declines.
"All of the major housing market indicators are expected to trend gradually up," said Lawrence Yun, chief NAR economist.
Signed contracts were up 14.4 percent in the 12 months to April.
Everyone drink.
Gee, who saw this coming? LOL!
Freegards
LEX
Yep, “unexpectedly”.
hic!
There’s that pesky “unexpectedly” again. Those statistics sure are sneaky.
If we actually played the game, we’d all have cirrhosis.
Unexpectedly!!!!
How can this be?
We’re in the greatest recovery ever, led by the economic genius.
Seeing just the opposite in my area in a big way.
We’ll have to start calling it the “U” word.
Based on what? The unemployed and underemployed are going to use what to pay mortgages?
Sorry, Lawrence, I can do better pulling projections out of my a$$... you're fired!
I didn’t think that had room to “slide” Otherwise, if their were any positive indicators it would be unexpected. A miracle really.
I doubt that even heavy dope-smokers have had “recent optimism.” That is purely a figment of the msm’s fevered imagination.
Barry is about to ride that double-dip onto the ash heap of history
There’s that pesky word again!...unexpectedly!...Just like Obama’s legacy going unexpectedly into the crapper!
How can this guy be so wrong for so long and still keep his job. Here's a realistic take on the housing market. Note he doesn't even go into the shadow inventory held by the banks. Bagdad Bob has more credibility than Lawrence Yun.
But that would be unexpected!
Buh buh but, sales will rise when all those people who were waiting for school to be over before moving to their new jobs? Jobs? oops! Guess that’s a sore subject, too.
EVERYTHING that is reported by ANYONE with ANY vested interest in any market area, jobs sector, government affilation, or media collusion is a goddam lie! Why can’t people see this?
Those who give up on finding a job might not be “unemployed” according to government statisticians, but they sure aren’t buying houses.
YEp, just like the “unexpected” FaceBook crash after Obumber endorsed it...
That was a given.
What a bunch of liars.
ALl these analysts on TV should be tried for enabling fraud.
With Obama 2.0 coming up, I am sure those who are unemployed are going to be able to apply for houses so that his statistics perk up before elections...
Never let a good lot of stupid and inept people professing ignorance go to waste...
Lolz!
How many more months until they're GONE!?
Lolz!
How many more months until they're GONE!?
Give Larry a break. He didn’t say when they’d “trend gradually up”.
I think what Yun is saying is that politicians are going to try something else, hope and change. Maybe they are going to push legislation to force yet again banks to make loans to unemployed people, so the stats go well for Zero during (re)elections, and so that Romney and the GOP-E is again put on the defensive to not align with evil conservatives who profess fiscal responsibility and preventing people from getting free homes.
There, and with TARP and all, Bush and co. are sure it will be paid back eventually... sure...
We know the scenario and how they operate, from illegals black mail, to Obamacare and ads showing old ladies thrown off a cliff with baby killing GOP-E refusing abortions.
Could be that buyers are rejecting more offers and beginning to hold out for higher price.
www.youtube.com/watch?v=G2y8Sx4B2Sk
On November 7, 2012, we can all expect that the word of the day will be “UNEXPECTED!”
Every bit of bad, but perfectly predictable, economic news is “unexpected’ by this crowd. I’m about 2/3 of the way through Reading ‘The Amateur’ and I truly believe that this stuff truly is unexpected by these...amateurs. obama really thinks he can change the world just because he wants to. He really thinks if he says the ecomony’s in a recovery...there will be a recovery! The guy is an amazingly clueless and self absorbed narcissist. Truly.
Predicted a 0.1% rise-and that in itself is a ridiculous prediction just so they could say for a week before the figures were actually released a rise was expected-but in actuality there was a 5.5% DECREASE? Not even close folks.
Perfectly stated.
I clicked the thread to count the uses of the word “unexpected” in the first 50 posts. I wonder which will be the funniest?
The pic of Marx in the dunce cap in the upper right corner is an especially nice touch. $:-)
Excellent! hahahaha!
“FOUR MILLION JOBS CREATED” is the Fraud’s latest bluster.
Let’s see.
1. Home prices the lowest in half a decade = Buyer’s Market.
2. 30 Year Mortgage Interest Rates the lowest EVER = Buyer’s Market.
3. Obama is President = Ignore 1 and 2. (Unexpected - LOL)
How many times does the unexpected have to happen before it becomes the expected?
” EVERYTHING that is reported by ANYONE with ANY vested interest in any market area, jobs sector, government affilation, or media collusion is a goddam lie! Why can’t people see this?”
It’s about time somebody posted this.
“Unexpectedly” hillarious as usual.
This chart is almost 2 years out dated — how much worse is it really?
Excellent chart.
When I went to Wash DC / Northern Virginia in April, you could see and feel the prosperity everywhere. It looks nothing like the heartland.
Good old Lawrence. That's been the NAR line for years and they pay him well for repeating it every month.
The job of the NAR chief economist is to forecast sunshine, not tell the truth. He says what the boss wants and collects his paycheck.
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