ex-T, youll need a thick skin on this thread
Posted on 04/26/2006 7:25:24 AM PDT by Grampa Dave
ECONOMIC REPORT Stunning 13.8% increase in new home sales
Median prices down year-over-year first time since Dec. 2003 By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- New home sales unexpectedly increased by 13.8% in March to a seasonally adjusted annual rate of 1.213 million, the highest level of the year, the Commerce Department estimated Wednesday. The increase more than reversed the 10.9% decline in sales in February. It was far stronger than the mild increase to 1.10 million annualized that was expected by economists surveyed by MarketWatch. See Economic Calendar.
Combined with the small increase reported in existing home sales on Tuesday, the report shows the housing market was much stronger in March than anyone had reason to believe. See earlier story. Other housing market indicators, including mortgage applications, housing starts and builders' sentiment, are pointing to a softer housing market.
The strength in home sales, if it persists, could keep the economy growing faster than the Federal Reserve wants and could lead to higher interest rates than now expected. See our complete coverage of the Fed. New home sales are down 8.2% year-to-date. Read the full report.
The government cautions, however, that its housing data are subject to large sampling and other statistical errors. The margin of error is so large, in fact, that the government cannot say with confidence that sales rose at all in March.
It can take up to six months for a trend in sales to emerge. New home sales have averaged 1.22 million per month over the past six months, down from 1.23 million in February and 1.30 million in November.
The inventory of unsold homes on the market increased 2.8% to 550,000, representing a 5.5-month supply at the March sales pace, down from 6.3 months in February. Median home prices fell 2.2% year-over-year to $224,200. It's the first time prices had fallen year-over-year since December 2003.
In March, sales rose 35.7% in the West, reversing the 30.3% drop in February. Sales increased 6.9% in the South, 10.9% in the Midwest and 4.7% in the Northeast.
In a separate report, the Commerce Department said orders for durable goods increased 6.1% in March, including a 71% gain in aircraft orders. Bookings were solid across most industries. See full story.
Rex Nutting is Washington bureau chief of MarketWatch.
"I hate bad news... (sarcasm)"
Join the pity parade as we cheer the latest bad news!
"LOL...That's something I haven't been able to figure out for the last couple years. The Dems say there might be more jobs but they're minimum wage jobs. I want to know how those people making minimum wage are buying all those homes in the 150 to 300 thou range."
It is a real paradox, isn't it! (sarcasm off!):)
With inventory rising, I say new homes for everyone!!
The Census Bureau: “Sales of new one-family houses in March 2006 were at a seasonally adjusted annual rate of 1,213,000. This is 13.8 percent (±14.9%)* above the revised February rate of 1,066,000, but is 7.2 percent (±12.8%)* below the March 2005 estimate of 1,307,000. The median sales price of new houses sold in March 2006 was $224,200.”
Median Prices in $:
03.05..229,3000
9.05...240,400
10.05..243,900
11.05..237,900
12.05..238,600
01.06..239,600
02.06..239,900
03.06..224,200
Inventory for sale at end of period:
03.05..441,000
07.05..459,000
08.05..477,000
09.05..491,000
10.05..492,000
11.05..508,000
12.05..515,000
01.06..526,000
02.06..536,000
03.06..553,000
“The new home sales report showed signs the housing market has slowed from peak levels. The median home price slipped 2.2 percent from a year earlier to $224,200, the first year-over-year decline since December 2003, the Commerce Department said.”
"Ah, more froth on the beer."
Most of us have upgraded to great micro brews and enjoy the beer and froth even more.
Whatever!
LOL. Good points. There are plenty of both kinds of jobs available: skilled and unskilled. What I would like to see is some sort or analysis showing the number of skills-required jobs available and the amount of Americans ready to do them. Every time I look at the want ads job sections in my local rag, I'm astounded at the numbers of employers looking for skilled employees. The question is how many young Americans have the skills to acquire these jobs?
From anecdotal sampling of the employable youth I know including family members, those with no schooling-required skills are subsisting on temporary, relatively low-paying jobs. Jobs and good-paying jobs are there, but the youth of this country must realize that they have to acquire the skills to do those good jobs. Like people who complain that their area of the country has no jobs or no good-paying jobs, they must either move to a part of the country that has them and/or acquire the skills to do them.
Thats odd, usually Jim will address the issue and give a thoughful multi word response.
Thank you!!!!!!!!1
Where is ex-texan? I'm surprised he hasn't responded to this news yet ;-)
What mystifies me is why so many pessimists don't just predict a slight lowering of home sales or whatever the economic topic is, they always predict DISASTER!!! Yes disaster is always awaiting us optimists who believe in the free-market system. According to the pessimists, after the housing bubble explodes, DISASTER AWAITS US !!!! Why so many of the naybobbers are fervently predicting Katrina-sized catastrophes, I'll never understand. I don't know if they're reading too much Paul Craig Roberts or just your average Marxist doomists like Molly Ivins.
That because of all those cash-out refis.
:-)
More bad news about the "terrible economy". Get your Kleenexs ready before you visit this bad news link.
http://www.freerepublic.com/focus/news/1621830/posts
I for one am glad ex-texan keeps posting. We decided not to buy our 4th house last Spring and so far have saved at least $100K here in Northern VA.
I think there was an asset price bubble in housing and the loose lending should be stopped. No-money down is risky for the banks and for all of us. This may very well cause pain in individual households. Foreclosures are creeping up. My friends (almost 40) just refinanced their home - their only choice being interest-only as they had an ARM previously and can't afford their home at the new rates.
Only time will tell, but these March housing numbers prove nothing. The builders are slashing prices and offering massive incentives, and resellers just can't compete.
ex-T, youll need a thick skin on this thread
"The question is how many young Americans have the skills to acquire these jobs?
From anecdotal sampling of the employable youth I know including family members, those with no schooling-required skills are subsisting on temporary, relatively low-paying jobs. Jobs and good-paying jobs are there, but the youth of this country must realize that they have to acquire the skills to do those good jobs. Like people who complain that their area of the country has no jobs or no good-paying jobs, they must either move to a part of the country that has them and/or acquire the skills to do them."
George 76 and I had some good exchanges on the problem you have identified. Hopefully George will come on board to discuss this as I try to manage two threads about the horrible economy.
I will get back to you before the day is over on this very important point.
They have been so brain washed that they have no common sense or sense of history.
Even the best stocks have some downturns in their stellar advances. There are cycles and lulls and very seldom the disasters as the Nay Boobs like to whine and cry about.
Whatever!
I'm 67, and I don't waste time with Negative Nay Boobs.
Infected with bird flu!
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