Wikinvest Wire

Existing home sales "crazy good"

Tuesday, December 22, 2009

The National Association of Realtors reported another big gain in home sales in November as buyers raced to beat what was believed to be a deadline for the homebuyer tax credit on December 1st, the popular program having recently been extended through next spring.
IMAGE It should be very interesting to see what this chart looks like in a few months, particularly if mortgage rates continue to rise. There will surely be a plunge in sales over the winter, what is normally a very slow time of the year for real estate purchases, but seasonal adjustments might make this winter's numbers look just as bad as it made the fall numbers look good given that so much demand has been drawn forward and there is now no urgency for anyone to buy a home, at least until the snow stops falling.

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Anonymous said...

Ok, so more homes are selling.

1. Is this simply because of price capitulation after a long period of asking prices that were not in line with reality? Is the market is now forcing a price drop, either through foreclosures or not?

2. How ARE prices adjusted for home sizes doing? (You can sell anything if you price it low enough)

But I do have anecdotal evidence that people are indeed still fools. A guy my wife knows and his girlfriend, having both lost jobs this year, and luckily both found new (lower paying) jobs, rushed out and bought a home together. Of course, predictably, they both lost their jobs again (in finanace!) soon after and are about to be out on their rear ends. Jobless, homeless, broke, with no credit.

Just when you think people learned their lessons and the good news may be real, I give you, the American consumer!

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