New-home sales increased 23.6% last month compared with May, topping economists' forecasts, but the sales level, 330,000, was the second-lowest since the government started tracking such data in 1963. Builders were forced to keep cutting prices to get those sales. The average selling price dropped to $242,900, the lowest for June since 2003.
The Christian Science Monitor
Showing posts with label home sales. Show all posts
Showing posts with label home sales. Show all posts
Tuesday, July 27, 2010
Tuesday, July 20, 2010
No relief is in sight for the U.S. housing market
It is clear that the U.S. housing supply was too big to be affected much by the tax credit for buyers, and for that reason, a bleak future awaits the market, according
to The Economist. "A durable solution to the crisis in housing needed to involve an answer to the epidemic of negative equity and a meaningful labour market recovery," The Economist notes. "America has neither."
The Economist
I'm concerned my outlook for further house price declines may be too conservative
to The Economist. "A durable solution to the crisis in housing needed to involve an answer to the epidemic of negative equity and a meaningful labour market recovery," The Economist notes. "America has neither."
The Economist
I'm concerned my outlook for further house price declines may be too conservative
Wednesday, June 24, 2009
New Home Sales Disappoint
Updated: 24-Jun-09 10:21 ET
New home sales in May were at a seasonally adjusted annual rate of 342,000. That was down -0.6% from the April level, which was revised lower to 344,000 from an originally reported 352,000. It was also down -32.8% from May 2008.
New home sales in May were at a seasonally adjusted annual rate of 342,000. That was down -0.6% from the April level, which was revised lower to 344,000 from an originally reported 352,000. It was also down -32.8% from May 2008.
Wednesday, May 27, 2009
Existing home sales for April
Updated: 27-May-09 10:00 ET
Existing home sales for April came in at an annualized rate of 4.7 million, which is in-line with that which was widely expected. The April rate was up modestly from the rate of 4.6 million for the prior month.
In turn, existing home sales increased 2.9% month-over-month, which is better than the 2.0% monthly increase that was expected. Home sales had slipped 3.4% month-over-month in the previous reading.
Meanwhile the House Price Index for March decreased 1.1% month-over-month. It was expected to increase 0.2% month-over-month. Meanwhile, the House Price Index for February was revised lower to reflect a 0.2% monthly increase.
Home sales and prices have been pressured in recent months by rising unemployment, despite efforts to keep mortgage rates down and tax incentives attractive. However, the better-than-expected month-over-month increase in sales has induced some knee-jerk buying in the broader market.
Existing home sales for April came in at an annualized rate of 4.7 million, which is in-line with that which was widely expected. The April rate was up modestly from the rate of 4.6 million for the prior month.
In turn, existing home sales increased 2.9% month-over-month, which is better than the 2.0% monthly increase that was expected. Home sales had slipped 3.4% month-over-month in the previous reading.
Meanwhile the House Price Index for March decreased 1.1% month-over-month. It was expected to increase 0.2% month-over-month. Meanwhile, the House Price Index for February was revised lower to reflect a 0.2% monthly increase.
Home sales and prices have been pressured in recent months by rising unemployment, despite efforts to keep mortgage rates down and tax incentives attractive. However, the better-than-expected month-over-month increase in sales has induced some knee-jerk buying in the broader market.
U.S. Home Prices Continue to Contract Sharply: No Recovery in Sight?
The S&P/Case-Shiller 20-City Composite Index fell 18.7% y/y in March 2009 as record levels of inventories and foreclosures continued to drive down home prices. All 20 cities covered in the survey showed a year-on-year decrease in prices, with 9 of the 20 areas showing rates of decline of over 20% y/y. The m/m pace of decline in March was slower than in February for 9 cities (S&P)
As of March 2009, average home prices are at similar levels to what they were in Q2 2003. From the peak in mid-2006, the 10-City Composite is down 33.1% and the 20-City Composite is down 32.2% (S&P)
As of March 2009, average home prices are at similar levels to what they were in Q2 2003. From the peak in mid-2006, the 10-City Composite is down 33.1% and the 20-City Composite is down 32.2% (S&P)
Wednesday, February 4, 2009
Market Reflections 2/3/2009
Vehicle sales were extremely weak in January in news that pushes concern over auto makers to a new level of urgency. The results will raise talk of major bankruptcies.
The news on vehicles sales surprisingly did not affect the market, at least in Tuesday's session. Shares of GM and Ford were little changed. The Dow industrials posted a strong 1.8 percent gain. Many companies warning of trouble ahead, including Dow Chemical, Cummins Engine and homebuilder DR Horton, posted gains on the session.
What did give a boost to the market was a bounce in pending home sales which, together with last week's report on existing home sales, are raising talk that low mortgage rates and falling home prices are finally giving a boost to the housing sector. The pending home sales data along with the stock market's gain pulled money out of the Treasury market where yields jumped sharply, including an 18 basis point jump to 3.66 percent for the 30-year bond.
News of a labor agreement between refiners and refinery workers hit the wires at the market close. But the news was expected and isn't likely to move oil prices which have been little changed in recent sessions at just over $40. Gold ended little changed at just over $900. The dollar fell 1-1/2 cents against the euro to $1.3036.
The news on vehicles sales surprisingly did not affect the market, at least in Tuesday's session. Shares of GM and Ford were little changed. The Dow industrials posted a strong 1.8 percent gain. Many companies warning of trouble ahead, including Dow Chemical, Cummins Engine and homebuilder DR Horton, posted gains on the session.
What did give a boost to the market was a bounce in pending home sales which, together with last week's report on existing home sales, are raising talk that low mortgage rates and falling home prices are finally giving a boost to the housing sector. The pending home sales data along with the stock market's gain pulled money out of the Treasury market where yields jumped sharply, including an 18 basis point jump to 3.66 percent for the 30-year bond.
News of a labor agreement between refiners and refinery workers hit the wires at the market close. But the news was expected and isn't likely to move oil prices which have been little changed in recent sessions at just over $40. Gold ended little changed at just over $900. The dollar fell 1-1/2 cents against the euro to $1.3036.
Tuesday, January 27, 2009
Market Reflections 1/26/2009
There was good economic news on Monday! Existing home sales jumped in December, boosted by lower mortgage rates and, here's the downside unfortunately, sharply falling home prices. Money moved into the stock market on the report, pushing the Dow industrials up 0.5 percent. But gains were limited by a deep and unusual run of company layoff announcements that included cuts by General Motors and Caterpillar to name just two.
News from U.K. financial firm Barclays that it won't need capital injections was more good news in the session, news that pushed up demand for sterling and the euro and pushed down the dollar which lost nearly 2 cents against the euro to end at $1.3168. Money moved out U.S. Treasuries where yields moved slightly higher, from 1/2 basis point on the 3-month T-bill to 6 basis points for the 30-year bond, ending at 0.10 percent and 3.38 percent respectively.
Oil and gold were little changed with oil holding firm above $45 on reports of deep OPEC output cuts and gold holding over $900 at just under $910. Copper was a big gainer on the day, ending 10% higher on expectations that rising home sales may lead to improved demand for construction and electrical products.
News from U.K. financial firm Barclays that it won't need capital injections was more good news in the session, news that pushed up demand for sterling and the euro and pushed down the dollar which lost nearly 2 cents against the euro to end at $1.3168. Money moved out U.S. Treasuries where yields moved slightly higher, from 1/2 basis point on the 3-month T-bill to 6 basis points for the 30-year bond, ending at 0.10 percent and 3.38 percent respectively.
Oil and gold were little changed with oil holding firm above $45 on reports of deep OPEC output cuts and gold holding over $900 at just under $910. Copper was a big gainer on the day, ending 10% higher on expectations that rising home sales may lead to improved demand for construction and electrical products.
Subscribe to:
Posts (Atom)