Posts Tagged ‘home sales’

The Housing Market Is Still Stalling

Tuesday, August 3rd, 2010

Homes aren’t selling and construction on new homes is slowing.

  • The stalling housing market can be attributed to global economic turmoil, falling stock prices, and slow labor markets.
  • Signed contracts in May and June have fallen dramatically.
  • Despite low mortgage rates, tighter lending standards are preventing buyers from getting a loan and purchasing a new home.
  • The two major issues in the job market are that there are too many homes and not enough demand.

Facts & Figures

  • An unprecedented number of homeowners owe more than their homes are worth.
  • Demand for mortgages is at a 14 year low.
  • Last week, the average rate on a 30-year fixed-rate mortgage was 4.57%, which is the lowest its been since 1971.

Best Quote

“The sellers think the market’s coming back. They’ve tacked on an extra 5 to 10 to 15%. The buyers aren’t going for it. It’s going to feel like a double-dip because sellers are going to have to lower their prices” – Jim Klinge, a real-estate agent in Carlsbad, California

New Homes Didn’t Sell In May

Tuesday, June 29th, 2010

Because a special tax credit for purchasing new-homes expired in April, sales plunged in May.

  • The drop in new home sales, which are at the lowest number since 1970, may be the result of buyers rushing to purchase homes before the tax credit expired.
  • New home construction and applications for home-buying loans also declined in May.
  • The decline may not be indicative of a weak recovery, but instead merely a reaction to the expired tax credit.

Facts & Figures

  • New home sales fell -32.7% from April to May.
  • Sales had increased by +12.1% in March and +14.7% in April.
  • In May 2010, the median price of a new home was $200,900, which is 9.6% lower than in 2009.

Best Quote

“It’s a concern that even with very low interest rates, you’re seeing there’s an inability of home sales to move up at all in the past year, but there’s a reason to believe going forward things wouldn’t be quite as bad as they are in May.” – Michael Feroli, Chief U.S. Economist at J.P. Morgan Chase