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Pending Home Sales Plunge Most Since 2013, Holdout Buyers Blamed
Following new home sales disappointment, pending home sales dropped 1.8% in June (missing expectations of a 0.9% rise) for the biggest drop sicne Dec 2013. After 5 months of gains, and with median prices at record highs, it appears affordability is crushing hopes of any sustained 'recovery' once again. Modest gains in the Northeast and West were offset by larger declines in the Midwest and South, but Larry Yun has an explanation, hold-out buyers are waiting for a better entry point (in other words - pent up demand is there).
Lawrence Yun, NAR chief economist, says although pending sales decreased in June, the overall trend in recent months supports a solid pace of home sales this summer.
"Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers' comfort level," he said.
"The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows."
...
"Strong price appreciation and an improving economy is finally giving some homeowners the incentive and financial capability to sell and trade up or down," adds Yun.
"Unfortunately, because nearly all of these sellers are likely buying another home, there isn't a net increase in inventory. A combination of homebuilders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options."
* * *
but it's not the dismal reality of the underlying economy and the sudden disappearance of the manic Chinese buyer...
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Call me silly...but it seems the word of the day is "plunge".
I'm more of a "collapse" or "crater" guy but I'll take a plunge on occasion such as "Hillary's chance at the presidency and ratings plunge".
Fate the Magnificent
"Push the Button, Max"
This problem is caused by all the 'holdout' unemployed...you know...all those millions who dont want to work. /s
As long as they can get half a million dollars from escaping Chinese for tar paper shacks in Cali, things will be cool......
Not as far as the stock market is concerned. I read an article which stated Yellen could delay interest rate hikes (can kicking). If that happens the fools will be so happy to buy more stocks.
I'm waiting for a deal on a Chinese ghost city...
Higher stock prices will cure what ails ya! Hang in there Mr. Yun - NYFED has got you covered.
If wall street was really responsible for China's current woes, then this un or intended consequence could ripple down really fast.
All SHTF energiesweirdly lining up for Sep/Oct 2015.
Because this could very well turn into a simple 2-screw vicious cycle. China dumps and US RE dumps....
2007 redux, different players, same result....
WTF! And we cannot do anything about it.
Stop funding all this weird science shit, LHC, fucking NASA, ISRO and start using money for REAL ISSUES.....
Bastards....and mostly blind, conditioned and therefore kind of blameless blameless bastards unfortunately....
I listen to this, and feel better.
Perhaps music will save us in the end....harmony...
Dire Straits, Sultans Of Swing, superb version, VINTAGE Knopfler....
2 hands, 6 strings, amplification and a sprinkling of genius, 50,000 people on a string :-)
https://www.youtube.com/watch?v=8Pa9x9fZBtY
I never knew John McEnroe played guitar that well! Have it playing on another window.
Fuck McEnroe! I was an Aaron Wiiliams man myself. All he did was crush pussy and make money.
No way, man! McEnroe was solid gold entertainment when he played.
Not only was his game fun to watch, but his temper and rants made him must-see-tv when I was a kid.
Even stranger:
https://www.youtube.com/watch?v=MviVS-paA0E
Did you know that Robert Downey Jr. can sing? Really sing? (And that Sting has no hair?)
Strangest music video that I've yet seen, though, is David Bowie and Bing Crosby singing White Christmas together. (Hard to imagine, eh?)
Strong appreciation and inproving eCONomy is finally giving some homeowners the incentive and financial capability to sell and trade up or down?
WTF is that mess? If I'm feeling financially capable why in the fuck would I want to trade down, and how many years have we heard "the improving eCONomy...."? News flash you retard, in part time Merika bartenders and waitresses can't afford to buy a home.
Doc, in 2003, my then wife and I were JOBLESS, couch-surfing in my 1987 528e in good ole, friendly norcal and the flipping was good.
We saw the whole thing up close and personal.
50 bucks int he bank, we got a pre-approval for a MILLION DOLLARS and were being chauffered around to bamboo stilt homes bulit by master japanese craftsmen in Berkeley amongst other things....
If you know someone and are willing to sign whatever frigging documents one of these loan arrangers sends you....anything is possible. We did th econservative thing by getting only a million, could have got 3 Mill. Just bigger lies.....
These scams are worked on serious dark pool, funny money....
Memories...
https://www.youtube.com/watch?v=3XijsnujcFg
The stupidity of the whole thing is amazing. I know a person who filed bankruptcy then seven years later almost to the day filed bankruptcy again. He got 100% financed for a $325,000 mortgage with a ninja loan.
I think this time the game will collapse, unable to be re-inflated in the US at least.
That inflation is raging like an inferno here in India, real cost of living is soaring...
The west is throwing easy money here now, loans if you fog a mirror (almost, rates are still high)....
Everyone is being pushed into a consumer/service economy with machines slated to run themselves and produce everything (think 3-D printing gone viral).
Interesting times, I feel lucky, in a slightly twisted but perhaps understandable way, to have participated FULL BORE in the .CON scam and the great housing boom....seminal events, at the forefront, what a ride it was....and now I'm repeating it here in India....
please point me in that direction!
Lawrence Yun = Baghdad Bob!!
I'm surprised that he didn't blame it on the icy weather.
There's never been a better time to buy an overpriced, soon to depreciate asset, that you already cannot afford.™
However, the National Association of Realtors says everthing is rainbows and skittles.
How can this be??
If everyone is to believe all the MSM shilling, this is the best time to make a home purchase before the Fed. caugh* caugh* raises rates in September.
/ heavy sarc
I picked up one of those real estate flyers at the sandwich shop yesterday... Them retards want over $300k for a ranch on a half acre.
Suck it, Yun.
Larry is a glass half full of bs kind of guy.
Once interest rates start to rise that should really boost sales... you know....Buy now or be priced out forever!
"Once interest rates start to rise.."
In to fairy tales are we?
Green Shoots!
BTF?
When Yun talks he channels Josef Goebbels.
This time around... When the first whispers of 'layoffs' start making the rounds, this housing recovery circus will shut down so fast it'll make yer head spin.
No Worries? June is typically the worst month for home sales! Who wants to buy a home in late Spring and early Summer? I'm looking for a bounce back in the winter.
It's over 90 degrees in New Jersey today, I can't buy a house! /sarcasm.
The old "The sun got in the buyer's eyes" excuse.
http://www.marketwatch.com/story/10-most-miserable-cities-in-america-201...
It's never been a better time to buy/sell.
Tylers,
I am not sure you saw what I wrote yesterday, but would there be any way to research the housing shadow inventory the banks still have on their balance sheets. If they weren't holding back supply, prices would drop.
This is how it begun in 2006.
FUCK YOU, NAR!!!!!! BASTARDS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Chinese are pulling out. The government needs to investigate every property purchased in the US over the last three years for laundering. I would guess dirty money is involved in the majority of the purchases on the coasts, most of it coming from China. If so, the properties should be immediately confiscated, the buyers jailed, and the realtors involved charged with accessory. Of course, none of this will ever happen.
The US property market is a Chinese laundry.
Let me make a complaint. I try and follow housing as best a layman can. What drives me fucking crazy is the way housing data is released. Sales and pending mortgages, building permits, etc. etc. That data is released and always compared to some fucking meaningless baseline. "Highest in 3 months" "Lowest in 6 months" "A 7% drop from 9 months ago" Blah! Blah!
How about a meaningful baseline.
There is no agreed-upon baseline. That's what makes statistics so fun.
Pending Home Sales Plunge Most Since 2013, Lack of Buyers Blamed