"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Friday, February 26, 2010

Existing Home Sales Miss the "experts" estimate by 8.2%

National Association of Realtors (NAR):
Existing Home Sales including single-family, townhomes, condominiums and co-ops – dropped 7.2 percent to a seasonally adjusted annual rate1 of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5 percent above the 4.53 million-unit level in January 2009.

Lawrence Yun NAR Chief economist, said there is still some delay between shopping and closing that affected current sales. “Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,” he said. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.”

Total housing inventory at the end of January fell 0.5 percent to 3.27 million existing homes available for sale, which represents a 7.8-month supply at the current sales pace, up from a 7.2-month supply in December. Raw unsold inventory is 9.6 percent below a year ago, and is at the lowest level since March 2006.

1. The brilliant, always bullish and giddy pundits forecast a 5.5 million rate
2. 7.2% drop from December's 5.44 million units
3. December was 16% lower than November's 6.49 million
5. 38% of January sales were "distressed" properties
6. 40% of January sales were first time homebuyers
7. 78% of total sales were distressed or first time buyers (not a balanced marketplace)

The Federal Government continues to pour BILLIONS of dollars to prop up the housing market and all they have accomplished is to pile added burden our children and grandchildren.

It is time for the current generation to buck up, assume responsibility for its greed and fiscal irresponsibility and give our grandchildren a chance!

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