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Here’s the latest Case-Shiller graph

Headlines read:

A Dream House After All, NYT, by Carl E. Case, Sept 1

IF you read the coverage of the latest figures on the sales of existing homes from the National Association of Realtors, you may well have come to the conclusion that the American dream is dead. It is indeed worrisome that sales in July were down 25 percent from a year ago…

But have some perspective, Case said. There are some advantages to buying now.

…IN fact, until about two months ago, it looked as if potential buyers were beginning to understand all these advantages and that the market was turning around. By May 2009, housing prices had stopped falling in a majority of the metropolitan areas surveyed in the Case-Shiller index. Sales were also up. In 2008, 4.9 million existing homes were sold. In 2009, the figure rose to 5.2 million; last November, sales hit an annual rate of 6.5 million (a boom-time number). Even new construction showed a pulse…

At about the same time the Case Shiller report came out, NAR published its report. Here’s the NAR statement:

Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors®.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009.

In the NYT blog, Economix, Existing home sales swan dive, the graph below appeared in the comment section, with the statement, welcome to the double dip…

So, graph #1 is about home sales prices and graph #2 is about home sales.

Another interesting article I came across, this one about NAR spin. Like to know what realtors would say about that one.

Then, there’s this Bankrate article

Wow, what to make of it all? Home prices are going back up (that’s gotta be ok?). Home sales went down (like we thought they would after the first-time home buyer tax credit was through).

And, people still feel positive about their homes and their value  (is that good or bad?).

Darned mystifying.

Care to weigh in? Please do…

2 Replies to “Home”

  1. There maybe advantages to buying now as Case says, but individual investors will have to compete against their own government in a bank-rigged system for the best deals according to that appeared in the Palm Beach Post today.

    Investors were pushed into a newly deregulated and progressively unpoliced stock market by savings and CD rates lowered so much that they couldn’t even keep up with inflation in the late 80’s and 90’s. This is, of course what banks wanted, because they were now able to have their own brokerage firms and manage their own funds. They would make more money.

    Then in the 2000s, investors saw 50 percent of their savings disappear due to bank mismanagement, and in some cases, outright thievery. We all know that certain banks were bailed out while others were, and still are being allowed to fail. In fact, they are still paying huge bonuses to key executives and stockholders and posting profits that are driving the stock market (unrealistically) back up again.

    Now, when it seems the smart thing would be to get out of a persistently rigged stock market with what we have left, and buy into the only potentially sound investment that is at historic lows, investors have to contend with their own government, establishing a non-competitive market especially designed for … wait for it … the banks … cutting individual, middle class investor out of the running for the best deals. The middle class can’t win for losing.

    This, of course, amounts to another federal bail out for the banks, who will be able to cut management expenses dramatically by not having to deal with properties piecemeal while selling in a noncompetitive venue.

    The CRAs which are falling all over themselves to get these federal funds should ask themselves if it is really “community redevelopment” to facilitate a process that would dramatically increase rentals and low-income ownership in their previously middle class neighborhoods.

    Like

    1. I read the Post’s article. Thanks for pointing me to it.

      Seems to me that it would have been better for home sales and home values if CRAs and investors could compete on equal ground, so to speak.

      Like

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