Hit the link. Look in left margin and scroll down. Click on report for mortgage applications.
All those buyers must have been paying cash? Right? . . . Right? . . .
Or perhaps the somebody was fudging statistics . . .
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'm not being negative, only pointing out a lack of information. If you only want certain people to reply to your articles you should use email.
In some areas, the housing market is slow or decreasing. In some areas, it is still going strong.
Apparently the resale of homes in the Phoenix area is down and very slow at this time. How do I know that? We know of 2 families and a widowed mother, who want to leave that area and buy in our area. Their homes in Phoenix are not selling, and they are missing out buying here.
"I'm surprised he hasn't responded to this news yet ;-)"
He's out in the bubble patch, looking for a bizarrely-priced example of a house in San Mateo to post. It's supposed to attract "The Great Bubble," which will finally come, and bestow all sorts of wonderful favors upon the faithful ... gold, website hits, credibility, that sort of thing.
Phoenix inventories:
1/02: 26,715
1/10: 28,790
1/20: 31,457
1/30: 32,512
2/10: 34,608
2/20: 35,455
2/28: 36,176
3/10: 37,680
3/20: 38,968
3/31: 39,852
4/10: 41,403
4/20: 43,054
4/22: 43,502
Hit the link. Look in left margin and scroll down. Click on report for mortgage applications.
All those buyers must have been paying cash? Right? . . . Right? . . .
Or perhaps the somebody was fudging statistics . . .
· The total number of mortgage applications fell hard for the second consecutive week and posted a 1.7% drop. So far during April applications are 0.9% below the March average which fell 1.0% from February.· Purchase applications fell 2.5% w/w following the 4.7% drop to open the month but the April average so far is up 1.2% from March, which rose 0.2% versus February.
· Applications to refinance slipped 0.4% after a 6.6% slide the prior week and in April are 4.1% below the March average.
I thought the housing boom was over.....
LOL
But economist Bob Brusca said last month's drop in new home prices is a sign that the market for new homes isn't nearly as strong as the jump in sales would suggest.
He noted that the report showed an unusual drop in prices from both February and a year earlier, which could be a sign that home builders are cutting prices to move a large supply of new homes now on the market.
"New homes sales sprang back top life like a zombie in a cheap horror flick," Brusca said. "And like that zombie, housing really is dead. Don't let all that twitching fool you."
It's the stupid economy!
Every month its over :)
They waited it out in the Bahamas.
"Well this stinks .. more good news"
Actually, that a pretty accurate sentiment. The FED will now very likely raise interest rates even more.
Blah.
More good news. Good find and thanks for posting it.
The American consumer is generally happier. He may be the happiest in over four years.
The American workers have jobs...lots of them.
This is related, in part, to the Bush Tax RATE Cuts. When one lowers the RATE, then the Tax revenues go up.
Another side benefit is that more people have more homes. Home ownership is good...for many reasons.
I expect there'll be a housing glut in Phoenix. It's happened before. The Phoenix area has grown way too fast and builders are building even faster trying to capitalize on it. On the flip size, there are bound to be some bargains there.
On the flip size, there are bound to be some bargains there.
At a birthday party one couple was complaining that his Mother's home in Scottsdale wasn't closing, and they were going to have to drop the price.
Immediately 4 couples who are really good friends went into a huddle and then talked to the couple with the Mother's home which isn't selling. They might buy her home to get out of the N California rain and our so called cold weather from Christmas to about this time of the year. They will divide up our bad weather and work out an occupancy deal. We said that we would be glad to rent it for a couple of weeks or share the costs in Jan/Feb next year.
Which weeks are still open ?
Housing prices go down due to the slowdown from the earlier price increases, and lo and behold, housing starts booming again. Now the fears are it might be too hot because good news is anathema to so many folks.
Seems like the market is doing what it does very well...
Good for you on saving some money!
However, one thing about real estate is that, in addition to the old line, "location, location, location", the business is very much a local one. Here in the Raleigh, NC area, new homes continue to be strong in addition to resales. In reviewing the local MLS, comparing Jan 1 to Apr 25 of 2005 to the same period this year: 9235 units have sold at an average of $215,064 TY vs. 7968 units sold at an average of $205,794 LY. Fortunately, this area is experiencing job growth and lots of people continue to relocate here. And our average house price is much lower than say the DC Metro area or other "hot" areas around the nation.
We are contemplating a move to Cary. Yes, the housing prices are a huge draw. But we think there is a possibility waiting it out here might work as well, since prices there are inflating more than here.
I am thinking that you might also be experiencing a "rolling boom", the effects of people from our area and other expensive areas cashing in and moving there. I have housewife friends who bought 2nd and 3rd houses in Raleigh and Charlotte on "spec" with the equity from their homes up here. (scary stuff).
I love that story about the Martha Stewart homes selling out in a weekend in Cary. Finally, a builder (KB Homes) with some sense knocked into his head that people might enjoy something other than a box house with box rooms and box cabinets.
The South will rise again, they say.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.