Posted on 08/24/2007 7:42:17 AM PDT by Always Right
WASHINGTON (MarketWatch) -- Sales of new home increased 2.8% in July to a seasonally adjusted annual rate of 870,000 as the inventory of homes for sale dropped for a fourth straight month, the Commerce Department estimated Friday.
Sales were stronger than the 820,000 annualized pace expected by economists surveyed by MarketWatch. See Economic Calendar. In addition, sales in June were revised slightly higher.
Sales are down 10.2% compared with last July. Read the full report.
Stocks turned higher after the report was released. See Market Snapshot.
Inventories of unsold homes fell about 1% to 533,000, the fourth consecutive decline. At the July sales pace, the inventory represented 7.5 months' supply, down from 7.7 months in June. Inventories are down 7% since last July. The median sales price in July was $239,500, up 0.6% compared with a year earlier. The median sales price can be affected by the mix of homes sold from region to region and among different price points.
The data cover activity through the end of July, before the severe credit squeeze forced additional mortgage lenders out of business and made nonconforming mortgages, including jumbo mortgages, harder to obtain. Most economists expect home sales to fall further, at least temporarily, because of the credit crunch.
(Excerpt) Read more at marketwatch.com ...
If one year I made one hundred thousand dollars, the next year I made half a million, and the next I made four hundred thousand, my salary would have dropped by twenty percent from year two. But I would still have made a lot more in year three than in year one. The fact is these last five years have been boom times for the real estate market. Because they sold less homes last July than the previous July does not make it a disaster.
Oh, the sub-primers *are* screwed. We’re well past the point of saving them. Chalk up several hundred thousand in the tank.
I’m talking about saving the *rest* of our economy. That, the Fed can do with some more cash injections and Fed Fund rate cuts (which will happen starting next month).
20 postings, and not ONE mention of the MORTGAGE FRAUD, much of it in the Inner-city, that is driving this thing...
Chalk up hundred’s of thousands a month IMO.
Buy US Treasuries and stay safe.
BUMP
And given all the heat aimed at Bernanke and the Fed lately, exactly how much pressure do you think the Commerce Department is under to fudge the numbers right now?
I don't think any Federal Government economic statistic can be trusted - good news, or bad. The numbers are shaped to achieve a given political result. Sales and prices might in fact be up, but I'd like to hear it from an unbiased source.
“While fear is a very powerful tool for the drive-by media, “subprime crisis” is pure smoke and mirrors”
Much of this has been nothing more than a media event. Possibly related to the upcoming Presidential and Congressional elections. And yes, the press is that irresponsible.
A south of Ft. Worth ditto to you.
Trying to resurrect "It's The Economy, Stupid," for that worked against Daddy Bush.
All the local ‘for sale by owner’ signs have disappeared in the past week. Must be something happening: possibly the announcement of the PFD being $1600.
Sales rose 22.4% in the West
Sales fell 24.3% in the Northeast
what is the PFD?
It’s what attracts shiftless drifters with no known work skills to Alaska.
Why do you post such nonsense?
This debacle is driven by the reality that mountains of not just bad but stupid loans were made and bought based on grossly inflated prices. That reality rightly engenders a lot of fear.
It may be that Countryside sold the mortgage so that it is not legally entitled to the payments. I hope that your friend’s attorney gave notice of filing of bankruptcy to the right entity.
After all, if sub prime mtgs are about 6-10% of the market and the usual default rate is even a very high 20% that is STILL only 20% of 6-10% or a mere 1.2-2% OF THE OVER ALL MTG MARKET.
Add to that the fact that about 60% of those who took out ARMS in the 2002-2005 years have already refinanced into fixed rate as is attested to by the head of Countrywide Mortgage Co and It is quite easy to see that this problem, while certainly real is vastly over blown.
Oh .... Permanent Development Fund .... never could understand that ... move to eliminate about 4000 dollars worth of tax obligation to a place where the real estate and other living expense costs are tripled. Go figure.
I have strong IT kung fu but there's not much use for that there or else I'd move. You guys have a gorgeous state.
It is called news...why do you make such ignorant and nonsensical comments?
They are betting on the new TransAlaska Natural Gas Pipeline. Take a chance. Quit your job, come on up, wait. Wait some more. Wait even more. Some years pass. Some decades. It’s funny, the previous Gov had the contract in the bag and he got voted out by his own Party. The contract disappeared, but we have a new Gov and maybe a contract next year, or the year after, or . . .
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