Sales of previously owned homes rose in December for the third straight month, bringing the supply of homes listed for sale to the lowest since 2006 and offering a glimmer of hope that the housing market could be starting to climb out of a profound downturn.
Existing-home sales increased 5% in December from a month earlier. Many economists had predicted that 2011 would be the worst year on record for existing home sales, but the year ended with 4.26 million sales, about 1.6% higher than the 4.19 million existing homes sold in 2010.
Home sales and home building are forecast to rise this year after sliding steeply the past five years in housing's worst downturn since the Great Depression. Investors are betting on the start of an upturn, bidding up home builder stocks and causing them to outperform the broader stock market.
Housings outlook is brightening with signs of a better economy. Last month, US employers added 200,000 jobs and the unemployment rate fell to 8.5%, lowest in nearly 3 years. While en economic shock could derail progress, there's now more evidence of improvement in the economy and housing will follow the economy, says David Crowe, Chief Economist at the National Association of Home Builders.
From USA Today and Wall Street Journal
Monday, January 23, 2012
Wednesday, January 11, 2012
To a Better 2012
CNBC’s Real Estate correspondent Diana Ollick had a piece on yesterday talking about the 7.3% (an increase was anticipated but not as large as this) increase in pending home sales nation wide. She noted that the largest increase was in the West (up 15%) were the market has been heating up of late (or something to that effect).
She also mentioned that she had spoken with several hedge funds that were buying up tracks of new, vacant house for rentals because of a strengthening economy/rental market with an eye to selling the houses in two years when the sales market was better. She noted when the BIG money comes in to the market that there is probably a light at the end of the tunnel (again, I don’t remember exactly…it was probably during my first cup of coffee). This was a surprise coming from her because, by her own admission, she has been singing the doom and gloom message all year.
Anyway, as I have said too often these last couple years the media has not helped the market or the Buyer physiology. Perhaps the news reporting, and the market conditions, is changing. I know there are a number of us who are busy during this typically slow week so we are going into 2012 with certainly more momentum than we had 12 months ago.
Happy New Year
She also mentioned that she had spoken with several hedge funds that were buying up tracks of new, vacant house for rentals because of a strengthening economy/rental market with an eye to selling the houses in two years when the sales market was better. She noted when the BIG money comes in to the market that there is probably a light at the end of the tunnel (again, I don’t remember exactly…it was probably during my first cup of coffee). This was a surprise coming from her because, by her own admission, she has been singing the doom and gloom message all year.
Anyway, as I have said too often these last couple years the media has not helped the market or the Buyer physiology. Perhaps the news reporting, and the market conditions, is changing. I know there are a number of us who are busy during this typically slow week so we are going into 2012 with certainly more momentum than we had 12 months ago.
Happy New Year
Subscribe to:
Posts (Atom)