This page has been archived and commenting is disabled.
Existing Home Prices Hit Record; Sales Soar To 8 Year High
Houses have become stocks... the higher the price, the more demand (especially as the government has your back with low down-payment loans and the re-emergence of IOs). With Existing Home Sales soaring to a SAAR of 5.49 million, the highest since early 2007, the fact that median home prices are at an all-time high appears to be any problem for the releveraging American (or Chinese) homebuyer.
Lawrence Yun, NAR chief economist, says backed by June's solid gain in closings, this year's spring buying season has been the strongest since the downturn. "Buyers have come back in force, leading to the strongest past two months in sales since early 2007," he said. "This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy."
Adds Yun, "June sales were also likely propelled by the spring's initial phase of rising mortgage rates, which usually prods some prospective buyers to buy now rather than wait until later when borrowing costs could be higher."
The median existing-home price for all housing types in June was $236,400, which is 6.5 percent above June 2014 and surpasses the peak median sales price set in July 2006 ($230,400). June's price increase also marks the 40th consecutive month of year-over-year gains.
Price gains were dominated by the $500 k plus range with low-cost home (under $100k ) seeing prices drop 2.6%
As supply continues to drop...
Regional Breakdown
- June existing-home sales in the Northeast climbed 4.3 percent to an annual rate of 720,000, and are now 12.5 percent above a year ago. The median price in the Northeast was $281,200, which is 3.9 percent higher than June 2014.
- In the Midwest, existing-home sales rose 4.7 percent to an annual rate of 1.33 million in June, and are 12.7 percent above June 2014. The median price in the Midwest was $190,000, up 7.2 percent from a year ago.
- Existing-home sales in the South increased 2.3 percent to an annual rate of 2.20 million in June, and are 7.3 percent above June 2014. The median price in the South was $205,000, up 7.2 percent from a year ago.
- Existing-home sales in the West rose 2.5 percent to an annual rate of 1.24 million in June, and are 8.8 percent above a year ago. The median price in the West was $328,900, which is 9.9 percent above June 2014.
* * *
»
- 17387 reads
- Printer-friendly version
- Send to friend
- advertisements -
We know it was a bubble in 2006, so what is it now?
I's now a flower.
It's never been a better time to buy! Contact your local liar, I mean real estate agent today. They can help you find that perfect shit box that you will never pay off, I mean home today!
As long as I can pitch my tent in someone's backyard, I'm cool with it.
Just hang on a second there Fukker... That'll be $900/month, thank you very much...
There'll be a Big Reset when:
1) Merika starts confiscating foreign-owned property in some sort of retaliation against China, Russia, etc [or taxing it heavily as they should];
2) tenants wake up and stop paying rent [or at least bargain harder];
3) rent control is passed and emnforced; and/or,
4) civil unrest break sout on large scale if the FSA is cut off from all the free stuff.
Be prepared!
OMG I know this is another signal for the big crash! OMG I feel it coming!
The English economy will crash very soon. OMG!
I had someone tell me yesterday that the housing market hasn't been artificially inflated since 2008. My head almost exploded! I knew I couldn't discuss anything with him and just went on with my day. Fucking amazing!!!
Hey Fukker, I'll go $850, but you gotta dig your own latrine.
anybody know what was the downward revision for may-or what not seasonally adjusted numbers are?
Reminds me of that scene from the old movie "Network" where Howard Beale sits down in a meeting with Howard Jensen. Classic movie!
"The arabs (Chinese) have taken billions (Trillions?) out of this country and now they must PUT IT BACK!"
How many people are actually moving into the newly-purchased home? I remember people buying multiple homes at a time with hopes of flipping.
Met a flipper fool yesterday.He'd just bought a complete renovation house without
doing his due diligence, just below asking.When I told him he had paid 4X its real value because of
legal access issues, he cried.
If you add it to student loans, sub-prime auto loans, and Obamacare - it's the Hindenburg.
< sniff, sniff >
What's that smell ? Can't quite make it out. It's either bullshit or a bubble.
unicorns are vomitting rainbow.
LOL!!! no wage growth, yet overpriced homes are selling like hotcakes....
where have we seen this before?
Just remember, everything is awesome! Real estate is partying like it is 2005!
People are herd animals.
2007: Negative feedback loop begins. Everyone dumps their houses, helping to create the real estate collapse.
2015: Positive feedback loop (everything is awesome). Creative financing returns. Do whatever you can to get one o' dem houses.
If you were a contrarian during all of this, you probably made a butt load of money
It gets better ... back to the future:
Reuters Exclusive: Global regulators may soften rules for asset-backed financing
http://www.reuters.com/article/2015/07/21/us-basel-abs-regulations-idUSKCN0PV22N20150721lmfao, at this comment. Now me and my 5 room mates need to work 4 part time jobs instead of 3 so we pay our new IO for 3 years mortgage.
"This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy."
* Look at the size of downward revision to the MoM numbers.
I wonder how much of this horse shit is being pulled forward by Fed. jawboning.
Here is Dallas we are in full blown inventory crisis. Builders are ramping up but they cannot fill the gap that the lack of building 3 or 4 years ago has caused. Homes for sale have 7-10 offers in the first 48 hours of listing. Buyers start to get frustrated after finding and losing 5+ houses which all required bidding wars.
I am an Investor/Broker/Builder in CA and that is not true here. Market in Riverside, San Bernardino is flat to life support. There are a few high sales mostly from people rolling equity from LA or San Diego but this is not the same market of 2009-2012. Lots of short sales that never close. New inventory is slowly selling since existing inventory is overpriced or tied up in a short sale.
I also live in Dallas area and in some areas it is absolutely true what you said, but I think they are creating another condo bubble that will end up like Vegas... some of the new condos have starting price of 800k+
For every sale there is most likely a subsequent buy. I would love to see the demographic and geographic food chain to see the anotomy of the market.
You know damn well all the people involved with houseing - banking/realtors/etc - are going to go down the same fucking path that brought this country to it's knees last time. Greedy slimey bottom feeding fuckers.
I call complete bullshit! I could have got 750k for my property during peak of housing bubble (stupid old lady wouldn't let me sell) I would be lucky to get a quarter of that now. We run antique booths that usually sell lots of furniture during spring when people move into their newly purchased home. Well we sold less furniture this spring than any other year we've been doing this (10years) the people who come up with these figures are on angel trumpets.
Your life and experience is not the country. And people can't afford furniture because house prices are high. They only go to ikea now.
LOL my wife works at IKEA, she's is amazed at all the gays and retards that shop there......if IKEA sales ever start sliding we are in BIG trouble because that means even the sheep are not spending...I'll keep you posted....
Yep, this has helped seal the fate of the American funiture manufacturers. The people that have an income, have it tied up in a huge mortgage. $400,000 to $700,000 homes filled with Ikea and Target furniture or curbside finds. I am in a fairly affluent area and most of the decent shops have closed, to be replaced with nail salons, secondhand stores or short-lived restaurants.
I have seen several big furniture stores close down in the past year so I'm not sure how to dissect and digest the above numbers.
Who knows?
When I venture to Lowe's or Home Depot, there is no doubt the volume is nowhere near the last bubble. They may be making money but I can clearly recall the hassle of hitting a Home Depot back in the boom. Always easy to find parking now. One thing that's different in this bubble, I'm guessing, is the paucity of HELOCs and such, so homeowners are not remodeling their f*ing kitchens every year or adding on that home theater wing. Just difficult to imagine young couples loaded with student debt getting into the housing market.
Perhaps the housing prices have a lot to do with inventory being kept off market.
It is obvious that Home Depot biz is down in recent years. When was the last time you saw a crane? Very little building activity. Its obviously slowed.
Their parents are buying them houses. Just read it a day or two ago.
Speaking of Bubbles! I was looking for small reasonable house in Southern Maine Town of Wells. I could not find one under 200k. Only trailers were available under that price.
Ha! A beach town home for under 200k in the Northeast. You may as well try to buy a house in boston for that much.
They want 180k for a 6 month condo cottage in Wells.
Well, all that hot Chinese money needs to go somewhere, right?
China sells a trillion in treasuries, and converts it to real estate. At least RE is a true asset. Can't convert it to commodities. Commodities are as fucked with as stocks and treasuries.
Fuck, i'd like to sell my 401k and pay down my mortgage, or buy a rental property. At least a rental is a real asset that produces real income. Not some share in a company that leverages my money with shitloads of future dollars to buy back shares to pump it's CEO's salary up.
How does it produce real income when your tenants move out and it costs you 10 grand to rehab the place so it's showable. Or you have to spend 3 grand on a lawyer to evict people because your liberal fucking state judges are corrupt and side with scumbags, or you constantly have to appeal your tax assesments because they go up 200% randomly. Being a small time landlord is not income producing, it's heart attack producing.
I wouldn't want to get into it. If one has an already paid for second home or some inherited thing, sure, I imagine the margin would make it worthwhile.
The eviction in leftist states can be something to behold. I live in California and once rented a large old Hollywood home. We needed a "roommate" for the downstairs to help pay the lease. Turned out to be scumbag who stopped paying his rent and any share of utilities. He refused to leave. We called the cops. We were informed that the law considered us landlords and we would have to go through the entire court process to evict him. We had to live with this guy for over 3 months while he laughed at us, living for free. At one point we turned off his power, the cops came and were going to arrest us. How we didn't end up facing murder charges is beyond me.
The bigger they are, the harder they fall. The potential loss fluctuation in that price range will be apparent again. Still amazed each day how little to no lesson was learned from 08.
There ought to be better housing reporting. Averages and medians can be misleading.
Averages: If two six-footers are alone in a room, the average height is six feet. If Shaq joins them, the average goes to 6'4", but the first two guys didn't get any taller.
Median: if in one month there are 10 sales, one each at 100K, 200K, etc. the median is ~$550K. if in the next month only the five highest-priced are sold, the median jumps to ~800K+, but the number of sales has decreased.
You could see the median price action decline from 2007 to 2011 as a result of slow sales at the top due to the credit crisis; the rise from 2011 to today, the result of cash buyers making record purchases of higher-end homes. It doesn't necessarily reflect a healthy market. It could be that the market is mostly sluggish but that the highest-priced homes are being bid ever higher.
Case-Schiller also has specific methodology which doesn't include new home sales or condominiums. But within its guidelines it does compare apples to the same earlier apples.
Anecdotally, I see more for-sale signs everywhere, and more 'pre-foreclosures' on Zillow and Trulia.
government has no idea what kind of fire it is playing with. If all it wants is to create inflation then it will succeed. But which mandate tells them to create inflation? The whole causation has got messed up and when the day of reckoning comes, they will say "no one saw it coming."
they can open the floodgates to make obtaining mortgages easier anytime they want to do so. Right now qualifying for such is a nightmare. Who wants to undergo all the documentation and questions for a measly $100-200,000 mortgage.
Free FHA (I think this starts 9/15/15) and all the other government mortgages from the student loan fiasco currently operating. Income Based or Income Contingent Plans will exclude most from qualifying simply because the authorities must use 1 or 2% of the outstanding balance. Almost no one can qualify with that nonsense. If not changed expect these lower priced homes to languish.
they've eased with FICO but haven't looked at the other crap they demand so I think a big real estate discount to start occurring in the 3rd-4th quarter of this year.
i'm not sure whether they recognize what they've set in motion to take place
send in more immigrants-they will save our real estate market, they don't have student loans, and it's probably against the law to ask them if they can pay for it.
It's not a bubble anymore it's a turd blossom
Meanwhile, the 'smart money' (?) Blackstone, is selling a big chunk of their housing inventory they bought for the rental market. Maybe they knew the Chinese were coming?
Real estate is a big club, and I ain't in it.
Wait. Is this based on data from the NAR? Why report anything from the NAR given their data track record?
All I know is this. I live in Cherry Hill, NJ, just outside of Philly. It is in one of the more desireable developments.....close to Philly. Home prices here have slightly increase from bottom in 2008 to arounf 250 to 400 range. Many of the young kids who moved in, pre bust, are underwater by 30k to 100K. Most importantly, homes that would sell in days are now sitting for months.There are a few forclosures etc It is simply not the same as it was in spite of low rates and other incentives. I doubt it ever will be the same!
On the other hand, contacts in DC and NYC say the markets are insane. In DC, an FBI friend who is moving there says you have to sign a contract stating how flexible you are to bid up your initial offer. Saves agent some time I guess and allows you to be exploited.
I talked to a nice lady, actually we ended up kissing, but she is a mortgage banker type thing, I cant remember I was too busy looking at her breasts...anyway, she said they are giving loans like candy. She lives in San Diego....They have changed the debt to income ratio dramatically, you can have bad credit, low down payments etc...She said she thinks this is all going to blow up soon and currently looking to move out of California....That is why she was in Oregon when I met her. She is planning to move here.
Correct me if I am wrong but about 4 years ago NAR overstated sales by 3 million or so--it was just an error.
Few, if any organizations are as slimy as the National Association of Realtors.
They are nothing but cheerleaders for the rotting carcass that passes for a housing market.
a.k.a. CNBS
seems to be pretty localized. NY and DC, the 2 growth areas (bankster scum and politician teat sucking scum) are probably back to around bubble levels, but I'd be shocked if it was a nationwide phenomenon.
I can vouch that even with very low inventories of homes (who can sell when they are upside down >$50k ?) the prices are also maybe 60% of bubble level in Chicago area. But, even within that region, some areas where bankster scum and teat sucking scum reside, those prices are higher in general.
Basically, it's only a recession/depression for 95% of the homeowners, the 1% are doing fucking great, and the 2-5%'rs are doing OK.
Most of these sales aren't legit sales- they are all cash transactions by rich folks buying and selling investment properties.