Posted on 09/26/2012 8:16:55 AM PDT by Qbert
Moments ago, the Census Bureau released the August new single-family house sales number: at 373,000 on an annualized basis, it missed expectations of a rise to 380,000, and was down from a revised 374,000. This is only the second miss in 2012, and confirms that all talk of a housing recovery is misguided, and merely represents one particular segment of the housing market: that of existing home sales where buyers have all cash, are price indiscriminate, and are willing to take advantage of the NAR's exemptions from anti-money laundering provisions. I.e., US real estate is merely a place to park cash for those who have obtained it using questionable means. Looking at the number on a non-SAAR basis reveals that only 31,000 actual houses sold in August, of which 3,000 in the Northeast: surely a reason to keep on bidding up the builders into the stratosphere: fear not, actual sales will come. Eventually. Finally, and demonstrating that rich buyers focus primarily on dumping money into existing mansions, was the distribution of purchases by price bucket, which showed a (Z), or under 500 houses sold, in the $750,000+ category. This was the first time there was a (Z) in this bucket since February.
Some recovery.
(Excerpt) Read more at zerohedge.com ...
From the experience of friends who have bought luxury homes lately, you should have a down payment of 50% cash, and 100% gets you the best deal, of course.
A loan for a modest suburban house? Fugedaboudit.
They just can’t make up their minds.
That explains why the ABC News broadcast just mentioned that the report came out but said nothing about its contents. Hilarious.
Yesterday we were all supposedly back to Hopeychange world with unicorns flying around, consumer confidence “surging” (based upon nada) and the housing mess finally (!) over after all these years. Today we wake up with the usual Obama-massive headache hangover and the truth.
It’s easy to get financing for most people. It’s what I do for a living.
My brother got a mortgage for a new 2,000-2,000 square foot house in south Shreveport. It evidently was a struggle and required a bigger than expected down payment. On the other hand the interest rate is very low.
*ouch*
GARY SHILLING: Here's Why There's No Housing Recovery And Prices Will Collapse Another 20% (Oops!)
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