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June New US Home Sales Rise 11%


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2009 Jul 27, 12:58am   3,961 views  15 comments

by WillyWanker   ➕follow (0)   💰tip ()  

"WASHINGTON (AP) -- New U.S. home sales rose by the largest amount in more than eight years last month, in another sign the housing market is finally bouncing back from the worst downturn in decades.

 

The Commerce Department said Monday that sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.

It was the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000."

The article goes on to read that this is another encouraging sign that the damaged housing sector is springing back to life.  This article follows news that home resales posted a 3.6% increase in June.

#housing

Comments 1 - 15 of 15   

1   jetfuel4   2009 Jul 27, 1:46am  

HAHAHAHAHAH......

2   jetfuel4   2009 Jul 27, 1:49am  

Existing home sales up 3 months in a row...new home sales RECORD in 9 years...yep....you boys missed the boat....hahahahahahah

3   mmribs   2009 Jul 27, 2:01am  

What are the year-over-year numbers?

Month-to-month numbers are fairly meaningless for seasonal phenomena such as home sales.

4   pkowen   2009 Jul 27, 2:02am  

http://money.cnn.com/2009/07/27/real_estate/June_new_home_sales/?postversion=2009072711

Yeah man, you are right. I hope you ran out and bought a few rental properties.

Um er, except (from the article):

"However, sales are still 21% below the levels of a year ago, when new homes sold in June at an annualized rate of 488,000, according to the report released by the U.S. Department of Housing and Urban Development. Four years ago, during the height of the housing boom, the sales rate for June was 1,374,000, nearly three-and-a-half times higher than last month."

and, um,

"... the median time to sell a home is at an all-time high of 11.8 months."

5   jetfuel4   2009 Jul 27, 2:05am  

Screw your numbers and articles man.........you know that little knot in your stomach.....yeah, you know what I'm talking about..hahahahahhahah

6   jetfuel4   2009 Jul 27, 2:18am  

It’s all about psychology baby. The banks will re-trench, individual sellers will dig in….and home values will RISE. And we couldn’t have done it with each and every one of you. So, from the bottom of my heart…..thank you. BTW, for all you renters I don’t have any homes available but I could put you on a waiting list. Cheers

7   moonmac   2009 Jul 27, 2:34am  

You must be huffing jet fuel! The same 25 homes for sale I've been driving past for the last 2 yrs are still empty! Tell me when the Magical Home Purchasing Fairy going to show up here you Idiot!

8   jetfuel4   2009 Jul 27, 2:40am  

Location, location, location my moon. AppleAnnie, you hit it right on the head. We know nothing is perfect, and there will be more ups and downs but these guys.....jeez

9   SyncMaster   2009 Jul 27, 2:41am  

jetfuel4 says

It’s all about psychology baby. The banks will re-trench, individual sellers will dig in….and home values will RISE. And we couldn’t have done it with each and every one of you. So, from the bottom of my heart…..thank you. BTW, for all you renters I don’t have any homes available but I could put you on a waiting list. Cheers

Blah, blah, blah... on the other news:

Number of home sales DOWN 21% year over year.
Median price DOWN 12% year over year.
Median price DOWN 6% from May 2009.
They have 8.8 months supply of housing already.

How does that translate into home price going up, again??

10   jetfuel4   2009 Jul 27, 2:44am  

My neighbors pulled up the moving truck yesterday and moved right on up. Twice the house, twice the price and STILL kept their home they bought AT THE PEAK. Rented it out and covered the mortgage and they're getting on with their lives. Oh, but they must be bad people...so bad, no they must be dumb or stupid or maybe they're just living their lives.

11   HeadSet   2009 Jul 27, 2:59am  

jetfuel4 says

they bought AT THE PEAK. Rented it out and covered the mortgage

What town is this in?

To buy at peak and have current rents cover the mortgage implies a very high down payment was made on the old home.

12   LAO   2009 Jul 27, 4:22am  

Jetfuel4 sounds like a Realtor cheerleader.. Or a deeply underwater homeowner on the Westside of Los Angeles...
Month to month sales are MEANINGLESS... What do you think is going to happen in September, October when the banks dump the hundreds of thousands of FORECLOSURES on the market?! When the Alt-A and Option Arm mortgages start expiring at a rapid pace... and the $8000 rebate expires?
I'll gladly wait until next year to buy... Does any SANE individual think waiting til next year to buy mean ANYONE missed the boat? A best case scenario in housing the prices will remain FLAT.... Worst case scenario prices will fall another 10-20%. There's no rush to buy JetFuel...
You show me 5 houses that raised their asking price... I'll show you thousands that lowered their asking price... Just saw a gorgeous home in Tarzana, CA lower their asking price from $750K to $699K... 4 bed/ 3 bath approx. 3000 sq feet with a pool and huge entertainers backyard.
If you bought this house last month JetFuel you'd be out $51K... We aren't all suckers like you want us to be... Until my list of favorites on REDFIN stops dropping their asking prices... It makes no sense to buy! Simple as that...

13   ian807   2009 Jul 27, 4:51am  

I think it's a safe assumption that real estate prices have a great deal farther to fall, probably to early 1990s levels. There's still a large inventory of bank foreclosures that has yet to hit the market. Banks that hold these foreclosures will soon need to raise more capital, particularly as they find the need to roll over their own debt.

In addition, there's a just a plain old-fashioned glut. in Houston, condominium projects whose money was obtained prior to the crash are still going up. Houston had a housing glut *before* the crash. It's just going to get worse once all the new condo projects (necessarily overpriced to cover costs) are created for nonexistent customers who fear losing their jobs. One project near Kirby street has hundreds of units. Only 7 were sold at opening time.

So JetFuel4, when he comes out of his/her manic phase, should take a sober look at the real numbers and what's coming down the pike, particularly at larger macroeconomic factors (Bank holdings of derivatives, oil supply decline over the next decade, etc.) Money isn't magic. There is no such thing. Optimism is not warranted yet.

Sorry to be Mr. Cold-water-of-reality-man, but there it is.

14   P2D2   2009 Jul 27, 5:11am  

AppleAnnie says

If the foreclosures are well priced, buyers will snatch them up.

Operative word is "well priced" which sounds more positive than "reduced priced" in down market. Recently I am hearing those words a lot from real estate industry.

AppleAnnie says

The shadow foreclosures will be bought up by the shadow buyers.

Who are those shadow buyers?

15   Realblue   2009 Jul 27, 6:31am  

I live in Laguna Beach. Homeshere as they might not go to 1990 prices are coming down from peak and moving quickly if at all - even summer rentals...not moving. A 2 bed/ 2 bath/ ocean view house (shack) around the corner was listed at 799K, now at 709K. 2 years ago that house would have been listed at 1.3M and sold. It's not moving. 2 homes had a In Escrow sign on it...months ago. No one living in it. I see more homes go on the market each day and prices are getting better - more house for less...not moving. Now, that is not to say that the homes in the 3 mill and up are fairing badly. I am not in that market so i don't look. However, will hold out because - and the same is felt by weary new owners when they open up to you that even here...housing prices will continue to decline to more modest levels as unemployment remains an issue. We have unemployment here to in LB - each day I hear of anothe person that was let go. This is not san bern, this is not riverside. This is not Arizona, Nevada, Miami - this is a coatal nice family oriented town with all the bells and whistles. I will hold out and continue to bank my cash for that right house whre I can happily hang my hat. FYI - was hearing the same buy now last year - if I did - that would have sucked!

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