Existing-Home Sales Jump To Highest Level in 2-1/2 Years

[sabra]

Source: CNBC/Reuters

Sales of previously owned U.S. homes rose in October at a faster-than-expected pace to the highest in more than 2-1/2 years as buyers rushed to take advantage of a popular tax credit, a survey showed Monday.

The National Association of Realtors said sales surged a record 10.1 percent to an annual rate of 6.10 million units, the highest since February 2007, from a downwardly revised 5.54 million unit pace in September.

Analysts polled by Reuters had expected October sales to jump to a 5.70 million unit pace from the previously reported 5.57 million units in September. Compared to October last year, home sales were up by a record 23.5 percent.

Read more: http://www.cnbc.com/id/34107568

[Craftsman]

1. 2 points:

This measures closing and since it takes several months to do most deals a good bit of this could be due to the first time buyers tax credit.

The NAR has been trying to paint a rosy picture of this train wreck since it started and I would not trust them to tell me water is wet.

[Sukie]

3. The article mentions the tax credit.

It doesn't take several months to close anymore, since the market has been so slow. One closed right next door in less than a month. Homes in my area over the half a million mark are even starting to move. An improvement overall has also begun to show. Of course not all areas will have the same sales, but this is still good. Plus, the tax credit will continue into the next year.

[hopfen]

12. Progressive Property Tax Credits

It is nice the tax credit is progressive, motivating people who don't own land to own land. The collapsed real estate market is a good thing in disguise. I just fear calls for broad-based property tax cuts since that would motivate real estate investors and other robber barons to buy up land, driving prices up again where the poor and middle class will not be able to afford homes again, turning them into rent slaves.

Property should be taxed on value, but it also needs to be taxed according to who owns it. A person who owns 10 properties should pay higher rates on all properties. A person who owns 1 property should pay no taxes or a lower rate. A person who owns no property should get a check from the government, funded by the taxes paid by the wealthy land owner. We are all equal share holders of the planet. The planet was not created by the labor of wealthy people.

[Mz Pip]

4. You are right about the several months

My son bought a house back in May. It finally closed this past Wednesday after months of delays with the various beauracracies that were involved.It was getting really frustrating for him since he was told initially he would be able to move in the first week of August.

[Igel]

10. Can be.

Depends on a lot of things.

We closed in about 4 weeks, and could have closed earlier. Made the bid in early-mid May, closed in early June, but we pre-qualified for a loan and the mortgage broker had all the ducks lined up. It actually took longer to get the post office to change the mailbox key.

The seller owned the house outright, so there was no bank involved, no liens, etc., etc. The group owned the thing, had owned it for months, and wanted it gone.

The realtor actively guided us away from short sales, saying they could take months and months and then collapse.

[Demeter]

2. You Mean, They Sold One? Which State?

[jpak]

8. Northeast Home Sales Soar 25 Percent in October

http://www.nytimes.com/aponline/2009/11/23/business/AP-US-Home-Sales-Northeastern-Cities.html

October Home Sales Rise 23 Pct in South

http://www.nytimes.com/aponline/2009/11/23/business/AP-US-Home-Sales-Southern-States.html

Midwest Home Sales Post 26 Pct Annual Increase

http://www.nytimes.com/aponline/2009/11/23/business/AP-US-Home-Sales-Midwestern-Cities.html

That answer your question?

[fasttense]

5. I wonder what they sold for? If the Fed has managed to re-inflate the housing bubble,

then I'm selling and getting the hell out of this unemployment hell in a red state.

Anyone interested in a 3 bedroom 2 1/2 baths (wood floors, open floor plan) with 15 acres in one of the most depressed economies in east TN?

[WriteDown]

9. That's my retirement home.

Love TN too. Sorry, 10 years away.

[Roland99]

6. Anything to do with this, too, maybe? >>>>>>>>>>>>

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=7033020&mesg_id=7033058

[BR_Parkway]

7. But they keep talking about it being an "annual" rate - sounds great on paper

but 6.1 million annual means 508,333 homes sold

Says 1st time buyers took 1/3 - so 169,444 took advantage of the credit

30% were distressed sales - 152,499

Meanwhile, both foreclosure and delinquencies hit new records in October - http://www.marketwatch.com/story/delinquencies-foreclosures-break-record-mba-2009-11-19

And no one is really sure how many properties the banks are holding on to until the market improves.


More cheerleading from NAR

[TexasObserver]

11. Didn't you hear? There is no good news until it's ALL good news!

The concept that a huge economic problem which took years to do its damage can be turned around in shorter than a few years is one which prohibits many from appreciating each bit of good news.

As the VP said, when your brother in law is out of work, it's a recession. When you're out of work, it's a depression. For those out of work or underemployed, good news for some sectors doesn't seem like good news for them. Unfortunately, the answer is for such persons is to appreciate the role each piece of good news plays.

For those who are anguish junkies, no good news will do, however.

[WilmywoodNCparalegal]

13. I find it hard to believe...

in my area of SE NC, homes are still way overpriced and overvalued, yet the pay around these parts is a terrible average of $14.00 an hour. So, praytell, who can afford to buy these homes??? In this credit market, who even qualifies for a mortgage and who can save enough, minding layoffs and whatnot, for a down payment?

Of course, we are seeing more and more retirees and transplants from NY and NJ who can afford the housing market if they sell their NY and NJ properties, but people who live and work here don't have it so good.

Which explains the still huge amount of property up for sale.

[Rolly88]

14. FAKE NATIONAL ASSOC. OF REALTORS HOME DATA

I don't think there is a second wave coming. That's kind of a simple way to explain it. Your option arm's are all mixed in. That option reset business is a bunch of garbage to. Because they have been around and sell at different times also. The only wave i see is tied to the sales of new houses. First time home buyers have the highest rate of default of any borrower.

Of course that makes sense. So does giving away credit to just about anyone to make a home sale. So the debt based banking system can rise again. The rest is fluff distracting you from how this this debt based system really works.

Of course to that isn't really working anymore either. Only a half-wit buys in a bad economy with the possibility of job-loss. Much less one that is on the brink of disaster. Not to mention a negative equity market. See it's what they don't tell you.

So in November. 3 days before "Black Friday" a miracle happens. Housing sales have gone up the highest in 3 years. Oh National Association of Realtors and Macy's it really is a wonderful life isn't it?

Honey thats it. Lets get the credit cards and go on a shopping spree. I know it honey she replies, lets roll the dice. There's the possibility we may wind up living in a tent. Yep he says and lets get a house from these nice people to. Little Johnny loves the woods, she mused to herself that isn't a bad idea.

Your not trying to sell me something here are you waffle boy? Mr. Toyota lassos the moon only to find Mrs. Toyota hanging from it. Get real. It's over with.