Housing: Existing Home Sales rocket up 10%, 2.5 year high; median price down 7.1% y/y

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The Economic Eeyore in me must note that in the West, the epicenter of the bubble collapse, sales were only up 1%. But take good news where you can get it!


The National Association of Realtors said sales surged a record 10.1 percent month-over-month 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. U.S. stock indexes extended gains on the data, while Treasury debt prices were little changed.

“Many buyers have been rushing to beat the deadline for first-time buyer credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November,” said Lawrence Yun, NAR’s chief economist.

Distressed transactions accounted for 30 percent of sales last month and continued to weigh on house prices. First-time buyers made up a third of sales in October.The national median home price fell 7.1 percent from October last year, the smallest decline in over a year, to $173,100. Homes in foreclosure typically sell for 15 to 20 percent less than traditional homes….

The big news, the inventory (we are all waiting for the shadow REO to hit the market):

The inventory of existing homes for sale in October fell 3.7 percent to 3.57 million units from the previous month, NAR said. At October’s sales pace, that represented a supply of 7.0 months, the lowest in 2-1/2 years, from September’s revised 8.0 months.

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November 23, 2009. Tags: , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Unemployment Statistics, Wall St. Comments off.

Housing Update:Banks Bulldoze Homes: SoCal: Temecula CA, and Victorville, TX Model Homes Bulldozed

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Gee, is THIS the housing bottom we were looking for? probably. If the Government can keep itself OUT of American business and they dont frak up the 17% of GDP that is health care too badly AND if they STOP the insanity of cap and trade we can do what we  would have done regardless, recovered. Economic Cycle and all that..

So Bernanke said he thought this might be a soup bowl recovery, and said housing bottoming..

Here is how Guaranty Federal of Guaranty Bank a TARP recipient BTW is handling housing , bulldozing the houses….one way to solve inventory but sad very sad, look at the BRAND NEW WINDOWS AND DOORS, cant they STRIP the items and resell them or DONATE them or something and THEN knock it down?:

Diana Olick at CNBC posted this video from VisionVictory:

Guaranty Federal a holding company of Guaranty bank received TARP money.

Victorville model homes being demolished.
BREAKING NEWS Developing: Another bank will begin the tear down of 20 Temecula homes in Southern California.

By Patrick Thatcher, staff writer for, Daily Press

Victorville- The housing collapse is taking a literal form for one bankrupt housing development.
Four model homes and 12 nearly finished spec homes at Bear Valley Road and Highway 395 are being demolished.

The developer filed bankruptcy about 18 months ago and the foreclosed property went to Guaranty Bank in Irvine.

A Guaranty Bank official, Real Estate Officer Dean Smith, said they were facing daily fines from the city of Victorville if they didnt do something with the homes and property that not up to code. He said it was a choice of pumping their own money into property site improvements and additional money to bring the home up to code or tear down the 16 homes.

Smith said the bank is not in the building or land development business and because of the current housing market does not see anything happening with the property for at least five years.  Our only option is to either proceed with putting more than a million bucks into the land, which weve already taken a huge hit on and lost a lot of money, or, we tear down the houses, Smith said.

He said the builder put up the homes before completing the site improvements and failed to have enough money to finish roads, walls, and other improvements that bring the community into code. Everything just fell apart at that point and we cant sell homes that are not up to code, Smith said.


May 5, 2009. Tags: , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Uncategorized, Unemployment Statistics. 1 comment.

Video Update: New Home Sales Figures Released….

Video Update: CNBC Diana Olick on Deeds in Lieu of Foreclosure increases (jingle mail) and David Faber earlier this month on pending ‘wave’ of foreclosures:

both clips courtesy of RealDealNews:

CNBC’s Diana Olick, Susan Wachter of Wharton Business School, Carl Horowitz of the National Legal and Policy Center and CNBC’s Tyler Mathisen last week discussed the fact that banks and homeowners are increasingly choosing not to go through the foreclosure process. Instead, homeowners are voluntarily giving their homes to the bank. Horowitz said that allowing homeowners to avoid the foreclosure process implies that there are no negative consequences to not paying a mortgage. Wachter said mortgage servicers receive incentives for allowing some mortgages to fall into foreclosure

On CNBC this week, housing analyst Ivy Zelman, CEO of Zelman and Associates, said there is a “tsunami of foreclosures and short sales still to come” over the next several years because of Alt-A and Option ARM loans. Zelman said that the housing market in 2009 will be worse than 2008 because of an oversupply of distressed inventory with home values dropping between 20 and 30 percent

And the beat beating in housing goes on….AWFUL NUMBERS!

CNBC Diana Olick reporting…read her excellent blog here on the housing beat…

New Home Sales PLUNGED 14.7% in December compared to a drop of 4.4% in November…a record low

Inventory-14.7 12.9 months supply, up from 12 months supply in November..

December Median New Home Sale Price $206,500 DOWN 9.3% FROM $227,000 A YEAR EARLIER!!!!! see the drop-off is escalating …WE NEED HOLC!!

Diana sums up PRICES GOING DOWN, INVENTORY GOING UP..why can’t they sell the homes, she asks..FORECLOSURES she says, WORD DIANA WORD!

PS new jobless claims came out and we are now averaging a loss of over a half million jobs a week..but don’t worry Congress is going to RAISE OUR UTILITY PRICES to help us, maroons!


January 29, 2009. Tags: , , , , , , , , , , . Hillary Clinton, Housing, Labor Department, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 2 comments.

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