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  #1  
Old 06-22-2017,
Apsddy2xThofe Apsddy2xThofe is offline
 
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Default Existing home sales report

Nice! Tell me those weren't great numbers, and I doubt anyone expected an 11% drop in the national ave for price. Did anybody see this coming? I know sumbody who did! LOL
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  #2  
Old 06-25-2017,
AsiaimPr AsiaimPr is offline
 
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Sales of new homes fell sharply last month, but prices increased — a sign that home builders are luring buyers with incentives rather than lower prices and that demand, while weakening, remains healthy.

The Commerce Department reported yesterday that January sales of new homes fell 5 percent, to an annual pace of 1.23 million, its lowest level in a year. Inventory of unsold new homes rose to a record level — to 528,000 in January, up 1.2 percent from December and more than 20 percent from a year ago.

But so far, the drop in sales has not significantly depressed home prices. In January, the median price of a new home (meaning half sold for more and half sold for less) increased 6.7 percent from a year ago, to $238,100. Housing experts say that reflects the efforts by home builders to lure buyers by offering to pay closing costs and to upgrade appliances and other fixtures, incentives that may increase their costs but that does not show up as a drop in the final price paid by buyers.
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  #3  
Old 06-25-2017,
asp137Rah asp137Rah is offline
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But so far, the drop in sales has not significantly depressed home prices. In January, the median price of a new home (meaning half sold for more and half sold for less) increased 6.7 percent from a year ago, to $238,100. Housing experts say that reflects the efforts by home builders to lure buyers by offering to pay closing costs and to upgrade appliances and other fixtures, incentives that may increase their costs but that does not show up as a drop in the final price paid by buyers.

"We are switching from a red-hot sellers' market to a market that is better balanced between buyers and sellers," said David Seiders, chief economist of the National Association of Home Builders.
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  #4  
Old 06-25-2017,
atasofuzev atasofuzev is offline
 
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Data on new home sales, which make up 15 percent of all transactions, are considered a leading but volatile indicator of the housing market because it uses a small data sample to estimate the number of purchase contracts signed.

Sales rose 3.8 percent in December and fell 7 percent in November, according to the data; they are down about 2 percent when averaged over the three months.

By comparison, existing home sales, which make up 85 percent of all transactions, measure contract closings from a much larger sample. They have shown a more consistent pattern of slowing, falling 5.7 percent in December, 1.3 percent in November and 2.7 percent in October. The National Association of Realtors is expected to release January sales data today, and economists expect sales to be flat for the month.
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  #5  
Old 06-26-2017,
AshlySylvi AshlySylvi is offline
 
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Home builders say they are having to work a bit harder to sell properties, but buyers in many parts of the country remain interested, especially when the deal is sweetened with granite countertops and top-of-the-line kitchen appliances.

Toll Brothers, the nation's biggest luxury home builder, is using incentives like these in some markets on the coasts, as well as special loans that can reduce the introductory rate on an adjustable mortgage by 1 percentage point or more. But the company has not cut its list prices.

"It's being portrayed almost as a collapsing market, and it's not that way at all," said Robert I. Toll, the company's chairman and chief executive. "But there's no doubt it's softer."

He added: "If this is a collapsing market, I'll make a deal with the devil. I'll take it forever. This is not a bad market."

Analysts say the true test for the housing market will come in the spring and summer, when home sales are typically at their highest level for the year. A significant slowdown during those months would hurt not only home builders but the economy as a whole, because it would reduce consumer spending on furniture and other household goods, and it could limit the ability of Americans to tap the value of their homes through refinancings and home equity loans.
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  #6  
Old 06-27-2017,
AshelyStul AshelyStul is offline
 
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"What we have seen so far is a slowdown in transactions, rather than price levels," said Jeffrey L. Knight, chief investment officer at Putnam Investments, the mutual fund company, "and that may well be the extent of what we see: a slowdown from a frenzied pace."

Many economists remain reluctant to draw too many conclusions based on yesterday's report, noting longstanding concerns about the new-homes data, which has a margin of error of plus or minus 11.5 percentage points this month. Last year, the Commerce Department also changed which local housing permitting offices it surveys monthly, making comparisons to data from previous years less reliable for new homes.

Sales fell in most parts of the country, except the West, where they were up 11.3 percent. Sales declined the most in the Northeast, 14.9 percent, followed by the Midwest, 10.8 percent, and the South, 10.3 percent.
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  #7  
Old 06-27-2017,
admin admin is offline
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hhhh, my bad, jist wishful thinkin I guess. Maybe next month! I doan expect home prices to make that major of a fall in any single month until the end of the coming wave down. 2 years out we will see home prices fall 11% in a month (year over year) as the number of homes banks hold on their books depress prices. Since we missed the top of the cycle in da homebuilders by a bunch (watch Cramer's Mad Money for clues on which sector is making long term top at any given time cause he telegraped the builders), the best way to play it would be with lenders, mortgage lenders, especially high risk ones. Or you can just short ACF at this level and hold for a year for a 50%+ fall. Da choice be up to you! *-)
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