OfflineThe National Association of Realtors® (NAR) reports that previously owned home sales surged in January to the highest level since May of 2010. Home sales have been in their longest dip since the Great Depression, and these new sales numbers are making some analysts hopeful that improvement may have begun for the housing sector.
NAR reported this week that existing home sales, the majority share of the overall housing market, rose 4.3 percent in January. This equals a seasonally adjusted annual rate of 4.57 million homes. However, this is still far below the 6 million pace that economists say is necessary for a healthy housing market.
First time home buyers are considered critical to the market, and their portion of purchases did increase to 33%. However, in healthy markets, first time buyers make up about 40% of the market. First time buyers are not in the market in normal numbers for a variety of reasons, including:
• Fear of continued price drops and buying a falling asset.
• Lack of the higher down payments required by lenders.
• Inability to qualify for a mortgage due to credit score or debt load.
With home prices still going down, about 2.2% for existing homes in January according to NAR, it’s hard to get excited about a potential recovery very soon. Because foreclosures have picked up again, there is another surge of distressed property sales expected in 2012 that will sap prices again.
NAR has lied and fudged the numbers again and again- they're trying to create urgency so more ppl will buy
Investors accounted for over 30% of the purchases/sales
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Here in my town in central California houses keep on droping in price every month. This is why im a little scared to buy my first home. But i am marketing for motivated sellers, so i can acquire a house for 60-70% of its FMV.
Mike, your right just like Dean saysy, the majority of people follow the media.
yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"Be not afraid of growing slowly; be afraid only of standing still"
Mike,
you're absolutely right... we know what's going on, don't need to read the 'NAR's news'
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
NAR talks out of both sides of its mouth and confuses the public, resulting in buyers' apprehension to buy. It's a mean, selfish monster lobby, which sadly I have to pay dues to. Look how hard and long it lobbied to prevent FSBOs from being able to finally list their properties on the MLS. Fooey!