Multi-bid offers have declined from 73.3 percent of offers written in April to 69.5 percent of offers written in May by Redfin agents, basically the same as May 2012, when 69.3 percent of Redfin offers went into bidding war. Most Redfin agents are located in West Coast markets.
Boasting of spending up to $8 billion dollars to buy tens of thousands of foreclosures to convert into single family rentals, nearly 50 Wall Street investment firms set real estate markets on fire over the past 18 months. Now they are running for cover as soaring prices water down their return on investment.
Foreclosure inventories fell 24 percent from last year at this time and completed foreclosures fell 16 percent year over year, according to the CoreLogic April National Foreclosure Report.
The number of homes for sale in April inched 1.6 percent higher than in March, the first month-over-month inventory increase since June 2010, according to the April RE/MAX National Housing Report.
In the several California markets that have seen soaring prices and historically low inventory levels during this spring buying season, a flood of new listings drove inventories up. The increasing inventories are helping to moderate price increases in the hot markets. In Sacramento, for example, list prices actually declined on a monthly basis.
Despite the housing recovery and home sales running 10.3 percent above the level of a year ago, mortgage originations are falling, signaling weakening refinancings.
Home prices are rising at double digit rates. Inventories are at historic lows. Two out of five applicants for a purchase mortgage are rejected. Yet nearly three quarters of Americans say it's a good time to buy a home.
March home prices rose at double digit rates-increasing faster than they have in seven years-and the outlook is nearly as good for April.
After accounting one out of four home sales in the depths of the housing recession and fueled turn-arounds in dozens of markets where waves of foreclosures and battered home values scared off other buyers, real estate investors today are playing a greatly diminished role in the housing recovery.
Neither an upswing in home sales nor a wave of new multifamily construction is affecting apartment vacancy rates so far this year. Rates are down and rents are strong across the nation. Apartment markets improved across all areas according to the National Multi Housing Council’s (NMHC) April Quarterly Survey of Apartment Market Conditions. All four [...]
Most sellers are getting as much or more than they are asking for their homes in eight out of 24 major metros tracked by a new market report released yesterday, a sign that the metros have crossed over from buyers' to sellers' markets.
While the median national list price rose by only a modest amount in March, all indicators suggest that a broad-based housing recovery is beginning to take hold across the nation as a whole. List prices are appreciating at a year-over-year basis in more than 100 of the 146 markets tracked by Realtor.com and nearly all are within reach of achieving positive year-over-year price growth by the end of the year. A successful spring market could move the entire nation into the black.
The hottest housing prices in the nation at last are encourage more sellers to list their homes, promising more sales and cooler price hikes in the weeks come.
Perhaps the greatest advantage of a short sale to beleaguered homeowner facing default and foreclosure is the opportunity to move on with life and put the bad debt behind them as quickly as possible. That advantage is shrinking as short sales take longer to sell than foreclosures.
Realtor.com listing data for February suggest buyers are getting an early start to the 2013 home buying season despite the bad weather in many parts of the country and inventories that are still at record lows. Sellers are finally responding to the positive market by replenishing depleted inventories.
In the hottest markets around the nation, "for sale by owner" signs are popping up in yards as penurious owners try their hands at selling their own homes. It's another sign of recovery that's raising echoes of the real estate boom seven years ago.
At long last, there are signs that the unprecedented year-long decline in for-sale inventories are slowing, though continuing to fall, just in time for the spring home buying season. But inventories may continue to decline through 2013.
The major national home price reports agree on trends but never agree on numbers because their data comes from different places and are manipulated differently to create the most accurate results. Yesterday S&P Case-Shiller announced 20012's gain was 7.3 percent. The federal government's index showed a 5.5 percent gain.
How long has it been since you heard the words "sold at a premium over asking price?" For the past six years, sales prices ended up somewhere south od list prices by at least five percent. Now, in the markets where the recovery is hottest, sellers are increasingly experiencing multiple bid scenarios and buyers are pre-empting the competition with offers over list price that stir up memories of the boom years.
The percentage of customers signing offers in January increased by 12 percentage points according to a leading brokerage and 23 percent of Americans think it is a good time to sell compared to 11 percent the same time last year, according to Fannie Mae's January 2013 National Housing Survey results.
With inventories down and prices up, sellers are ending the costly incentives they have been forced to offer buyers during the six-year long buyers' market. Concession-free transactions make deal-making simply on both sides of the table.
Hot foreclosure markets have come and gone over the past seven years but one thing seems to stay the same. The markets with the most and the cheapest foreclosures are still located in Florida.
Only half of many homes in America are listed for sale compared to the height of the housing boom in 2006 while median list prices are about the same as they were a year ago.
Markets that fell hardest during the housing crash five years ago today are racking up the biggest year over year gains as the prices in the nation as a whole through October exceeded analysts' forecasts. Housing markets that were on their knees just a year or so ago from foreclosures and low employment today are seeing prides rise much faster than cities that never felt the housing crash, according to the latest S&P/Case-Shiller Home Price Indices.
Though inventory shortages began at the lower price tiers, tight inventories have worked their way up to the luxury levels in the past two quarters. Expensive homes are selling faster than they were a year ago but third quarter prices are down in many markets compared to a year ago
New homes, the hottest sector of the real estate market, got even hotter in September as sales hit the fastest pace in two and a half years.
Inventories remained at historic lows in September, down 17.77 percent compared to a year ago and the median list price was marginally higher, but a growing number of older industrialized areas are showing signs of weakness and the gains observed earlier in the 2012 home buying season in many markets appear to be moderating.
Mortgage financing in the housing market jumped sharply in the month of August, but the use of FHA financing declined, suggesting the government program is losing favor and private lenders are gaining market share.
Investor participation in the housing market dropped sharply in July, establishing a two-month trend and showing a clear reversal of long-term growth in investor purchases of residential properties, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Record low inventories of homes for sale, which are boosting home values and prices but depressing sales, show no signs of letting up. Though decline is normal this time of year, inventories stubbornly remain at decades-low levels.
Dwindling inventories are now less than three-quarters the size that they were a year ago, according to the latest national report from RE/MAX. In fact, Inventories are so low that they have turned from friend to enemy of the housing recovery, limiting home sales, especially in the lower price range, where most sales are now occurring.
Inventories overall have fallen 20 percent but the supply of lower tier, entry level properties is tighter than that as bidding wars erupt in markets across the country that until very recently were choked with foreclosures and short sales.
June existing home sales might be down 5.4 percent nationwide but hot weather is heating up hot markets to boiling, pushing sales to levels unseen in years and raising the specter of price bubbles
Not only are inventories down 27 percent from last year, prices are up 2.5 percent in May and 3.7 percent from June 2011. Sales have risen every month for the last year in RE/MAX's national housing report. In fact, for five straight months, sales and prices have both increased on a monthly and annual basis.
It's still a buyer's market for properties selling for more than half a million as tight inventories driven by negative equity and slow foreclosure processing and rising prices are having much less impact on luxury homes than on less expensive homes.
National median list prices have been on the rise since the beginning of the year and now stand at $195,000, up 2.68 percent on a year-over-year basis, according to the June Realtor.com Trend Data released today. Of 146 markets covered by Realtor.com, while list prices increased in 101 markets, held steady in 26 markets, [...]
Tighter market conditions caused by negative equity and a higher level of distress sales are driving up prices three times faster among lower priced homes than expensive ones.
Record tight inventories are making it increasingly difficult for growing numbers of buyers, who are creating multiple bid environments in markets that haven't seen buyers battle over homes in six years
Record-low inventory levels are breathing new life into homes that were withdrawn from the market but now are finding buyers in markets across the country.
Widespread shortages in housing inventories, especially in states that have experienced large price declines since 2006, are reducing the time homes for sale are spending on market, especially move-in ready foreclosures (REO) .
Key market indicators for May 2012 suggest that the housing market is steadily moving along a path of stabilization and gradual recovery, reports Realtor.com.
Under current economic conditions, the risk of defaults on mortgages currently being originated is only 20 percent higher than the average of similar loans originated in the 1990s and much less than in 2006-2008 period
FHA foreclosures rose 73 percent in April, driven primarily by defaults of loans made in 2008 and 2009 vintage loans, raising new questions about the solvency of the popular government program, which accounts for about a third of all new mortgages.
More than half of all Americans are concerned that a huge wave of backlogged foreclosures to be released by major lenders in the wake of the Robo-signing scandal will lower home values in their markets.
The housing inventory rose slightly in April, which is unusual in the middle of the spring sales season. The uptick may be the result of rising seller confidence and it should ease concerns that the super tight inventory levels of the last six months have dampened sales by limiting buyer options.
Introduced about 15 years ago, sites accepting online mortgage applications continue to increase market share. The latest data from an online lending leader suggests that today's home buyers are shopping and applying for mortgages on the Internet as never before.
Median home prices have continued to fall in the Midwest, now 2.4 percent below January levels, while every other region has shown improvement over the past three months.
What three things do Dallas, Midland, Tulsa, Billings, Oklahoma City, and Corpus Christi have in common?
Last year's home buying season continued through the balance of 2011 and though January, according to RE/MAX, which reported yesterday that sales have risen seven straight months.
For the first time since the condo crash of 2007, Florida median existing condo prices came roaring back 2011, rising by a hefty 5 percent on a quarter-to-quarter basis.
Home prices in the U.S. decreased 4.7 percent in 2011, achieving the fifth consecutive annual loss after prices fell five straight months in a row in the second half of the year.
Home prices have declined steadily over the past three months and now trail last year by 3.9 percent, according to the latest CoreLogic Home Price Index.
Prices were down 3.8 percent from August last year and based on partial data for September, sales will further decline approximately 1.1 percent to come, according to the latest Lender Processing Services' Home Price Index.
Florida's existing home and existing condo sales continued their year-long upswing in September, according to the latest housing data released by Florida Realtors®. Existing home sales increased 10 percent last month with a total of 15,036 homes sold statewide compared to 13,723 homes sold in September 2010, according to Florida Realtors.
A decline in inventories is normal at this time of the year as real estate markets buckle down for the fall and winter season. But the 20 percent plus drop in inventories from last year at this time suggests something else is going on.
Heightened economic uncertainty and lower loan limits contributed to a decrease in California home sales in September. However, September home sales posted higher on a year-to-year basis for the third consecutive month and remain at stable levels.
Through July, home prices registered a fourth consecutive month of increases up 0.9 percent in July over June.
Home prices rose in the second quarter almost as much as they fell in the first, but prices at the end of June still trailed June 2010 levels-which still reflected demand generated by the tax credit boomlet.
Never before have housing markets experienced low interest rates, high unemployment, and a glut of inventory hiding in the shadow.
Strict lending standards, bad appraisals and concern about the economy all contributed to lower than normal sales in July.
The nation's housing sector is having trouble lifting itself out of the enormous hole it has been in since the real estate bust began several years ago.
Luxury homes have been spending about 16 percent less time on market since early March even though inventories have been rising, which is normal during the Spring buying season, according to the latest weekly report from the Institute for Luxury Home Marketing.
First quarter home values fell dramatically, roughly echoing the significant prices drops in the first quarter reported by Clear Capital and others who have confirmed the long feared double dip.
Consumer attitudes towards the housing markets are echoing views in the years immediately preceding the peak of the housing boom, according to a new national survey by the Gallup poll.
It's still very much a "cold" buyer's market according to the Institute for Luxury Home Marketing's April 24 Luxury Housing Report, but early numbers from the spring home buying season suggest that demand is warming up.
The U.S. housing sector is struggling to gain upward momentum...
Nationally home prices fell for the seventh month in a row in February according to the CoreLogic HPI, declining by 6.7 percent year over year after declining by 5.5 percent in January 2011 compared to January 2010.
Despites declines in prices through the fourth quarter and January, sellers are expecting nearly demand to be as strong as it was at the beginning of the homebuyer tax run-up in sales a year ago according to February data released today by Move, Inc.
In January the number of searches for homes by buyers on the Internet's largest homes-for-sale site, a potential an indicator of future demand, rose 10 percent over a year ago, a time when large numbers of buyers were getting ready to take advantage of the homebuyer tax credits.
The "most popular measure" of existing home sales, the National Association of Realtors' Existing Home Sales, has increasingly overstated home sales for ten years as measured by five other sources, and reached a level in 2010 that is 15 to 20 percent higher than actual sales, according to data provider CoreLogic, which made the charges in its US Housing and Market Trends Report.
Seven months after the first-time homebuyer tax credit expired, first-time buyers registered a surprisingly strong share of housing markets across the country, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
Nonprofits are flush with federal stimulus funds to purchase foreclosed properties. Faced with fierce competition for REO properties in hot markets, Neighborhood Stabilization Project (NSP) managers are adopting multiple property acquisition strategies.
The recovery of housing prices will take at least four more years, according to a monthly survey of 110 leading economists and real estate experts, significantly longer than previously estimated.
The New York Times once described downtown Scottsdale as “a desert version of Miami’s South Beach” with “plenty of late night partying and a buzzing hotel scene.” Luxury marketer and builder Luetta Newnam of Casa Buena Realty LLC, is a second-generation Realtor who has watched the real estate market swing to dizzying heights and record equity [...]
The words competition and highest net proceeds replace luck and lottery in the U.S. Dept. of Housing and Urban Development’s (HUD) Good Neighbor Next Door Program and HUD approved real estate brokerages must be used to place bids for purchasers.
Home prices have fallen on a national basis for three months in a row, declining by 5.8 percent in November compared to August, according to a leading price index released today. The Midwest region experienced the biggest quarterly price change (-9.9 percent) and increasing numbers of local markets dropped into double dip territory.
HUD has completed a massive overhaul of its FHA REO sales program with a superstore website, new management design, new commission schedules, and increased opportunities for owner occupant purchasers and nonprofits.
Declining home prices spread across the nation last month, reaching 25 of the 26 top markets tracked by Altos Research. Only Washington, DC, with its large Federal workforce, experienced a gain.
Home prices may fall an additional 1 to 1.5 percent in the third quarter but they will stabilize during the first half of 20011 and begin to rise during the balance of the year, according to the September forecast issued by the GSE's economists.
Now that the homebuyer tax credit is no longer able to prop up home sales, risks facing the housing market are heavily weighted to the downside.
Inventories of existing homes for sale as measured by months supply broke an all-time record in July.
Virtually every other indicator from Pending Sales to Mortgage Purchase Applications is showing home sales headed south with the expiration of the homebuyer tax credit ended April 30.
Home purchase contracts signed in May dropped to their lowest level in the history of the Pending Home Sales Index. Contracts fell to a level of 77.6\, 30 percent below April and 15.9 percent below May 2009.
Three out of four homeowners think their homes are worth more than the amount their agents recommend they list them for, and 63 percent of agents and brokers say buyers they represent think homes for sale are overpriced.
Price cutting of listed properties apparently has eased as real estate markets recover from the boom and bust of the tax credit. On an annual basis, price cutting declined slightly.
Reporting a 2.7 percent rise in net earnings today for the first quarter, the nation's second largest home improvement retailer remains cautious about the balance of 2010.
However, if many buyers artificially inflated their prices to take advantage of the credit, that price drop might occur faster in many markets.
PMI's second quarter U.S. Market Risk Index showed fresh evidence of a recovering national housing market, including improved prospects of higher housing prices in many markets within two years.
Last week's 27 percent surge in new home sales in March, the largest advance since April 1963, signals future increases in existing home sales, which rose only 7 percent in March, and may show the real impact of the homebuyer tax credit, which expires at the end of this week.
Though conventional wisdom counted them out, first-time home buyers drove the housing market in March, posting a record high share, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.
Housing activity has slipped considerably during these past several months but help may be on its way. A primary obstacle to a long term housing recovery has been a lack of hiring. But recent gains in the job market portends favorably for a needed boost in housing demand.
Looking forward, expect downward pressure on home values, as measured by the Case-Shiller index, due to mounting foreclosures, supply imbalances and relatively weak housing demand.
Housing activity is sputtering even though there are government subsidy programs in place to support housing demand.
Record snows may still clog driveways and carpet lawns with ice but the spring real estate market is kicking off across the country earlier than normal as buyers push to make the April 30 tax credit deadline.
At a cursory glance, the U.S. economy is improving, while the status of the housing market remains uncertain.
It is painfully clear that the number one obstacle preventing a complete housing recovery is the foreclosure crisis.
During the past several years, the nation's housing sector has been weighed down with a disturbing trend that had been absent since the Great Depression: falling home values.
Real estate commissions have risen for four straight years and they are higher today than they have been since 2001.
There was a large drop-off in the number of households signing home sales contracts in November...
Housing data released this past month suggest a more uncertain housing outlook than the month before.
After soaring in October, sales of previously owned homes rose sharply again in November, climbing to their strongest pace since early 2007.
As we approach the New Year, we are more hopeful about prospects for 2010 compared to the dismal performance of 2009.
Don't let recent good news about the nation's housing sector lull you into believing that the housing market is firmly on the road to recovery-because it isn't.
More people applied for mortgage loans to either purchase a home or to refinance their existing mortgage loan according to a survey of mortgage lenders released yesterday morning. A weekly survey conducted by the Mortgage Bankers Association reported that in the week ending November 27, mortgage applications to purchase homes increased 4.1 percent from a week [...]
The index of pending home sales reported by the National Association of Realtors, climbed 3.7 percent in October compared to the previous month, marking the ninth consecutive month that the index has increased.
Wild swings in the housing data released this past week indicate that both homebuilders and households were heavily influenced by the tax credit extension debate.
Driven by the first-time buyer tax credit, existing-home sales showed another big gain in October, while inventories continue to decline
Investors buying homes to rent or sell accounted for only 15 percent of the housing market last month as they competed with large numbers of first-time homebuyers.
Today's housing recovery is having a difficult time settling into a steady trajectory.
The National Association of Home Builders' (NAHB) 55+ Single-Family Housing Market Index showed a six-point increase in the third quarter of 2009,
Contracts on existing homes rose 6.1 percent in September as first-time homebuyers rushed to take advantage of the $8000 Federal tax credit before it expires November 30.
The average conforming 30-year fixed mortgage rate inched higher to 5.35 percent, according to Bankrate.com's weekly national survey.
Sales of new homes fell in September after rising for five consecutive months, a government report said Wednesday.
Home values, as measured by the popular S&P Case-Shiller home price index of 20 cities rose a non-seasonally adjusted 1.2 percent in August compared to a month earlier.
Sales of previously owned homes rose sharply in September to their highest level in two year, according to a report from a leading trade association released Friday. Existing home sales rose 9.4 percent in September to 5.57 annualized units from a 5.09 annualized pace in August according to a report issued by the National Association of [...]
Last week applications for mortgages fell 13.7 percent on a seasonally adjusted basis from one week earlier.
Housing construction of new homes in the U.S. increased slightly in September, disappointing housing analysts
Borrowing costs for households seeking to purchase a home or refinance their mortgage loan rose slightly during the week ending October 15
Less people applied for mortgage loans to either purchase a home or to refinance their existing mortgage loan according to a survey of mortgage lenders released yesterday morning.
There has been a sharp reversal in home prices in recent months-home values are now going up, rather than down and a rise in buyer optimism may have something to do with it.
Homebuyers have less than a month left to take advantage of a program that pays a significant part of a buyer's closing costs...
Borrowing costs for households seeking to purchase a home or refinance their mortgage loan fell to near historic low levels during the week ending October 8
More people are applying for mortgage loans to either purchase a home or to refinance their existing mortgage loan according to a survey of mortgage lenders released this morning.
The rich and famous are buying again according to a report on home prices in the Hamptons, an exclusive summer retreat in Long Island, New York.
A government report on construction spending in August underscored the divergence of residential and commercial real estate activity.
Households rushed to sign more home sales contracts in August that at any other month this year according to a recent housing report.
Borrowing costs for households seeking to purchase a home or refinance their mortgage loan held steady during the week of September 24.
Government efforts to keep people in their homes are working according to a government report released this week.
Less people are applying for mortgage loans to either purchase a home or to refinance their existing mortgage loan according to a survey of mortgage lenders released this morning.
Home prices rose for the third consecutive month in July according to a report released Tuesday by S&P Case-Shiller.
A Long Island family has turned a tragedy into an opportunity-a green opportunity that is. And the family might live happily ever after.
New home sales have increased 5 consecutive months.
Existing home sales decreased in August, after a four-month stretch of increases, according to a release issued on Thursday.
Federal Reserve policymakers announced yesterday that although the economy and housing markets have improved, they are not yet ready to remove monetary support for growth. This was good news for both the economy and housing markets.
U.S. households were $2 trillion wealthier at the end of the second quarter compared to the first quarter of 2009 according to a report recently released by the Federal Reserve. This was the first time in two years that household net worth increased.
More people are applying for mortgage loans to either purchase a home or to refinance their existing mortgage loan according to a survey of mortgage lenders released this morning.
New housing construction in the U.S. rose to the highest level in nine months according to a government report released Thursday.
The housing recovery has been modest at best even though home affordability is hovering near record levels. Housing is more affordable today because of historically low mortgage rates and falling home values. But affordability measures have become less relevant in today’s real estate marketplace.
Slowly but surely, progress is being made for both the economy and the housing sector.
There are some harsh realities at work that promise to inhibit housing demand into the foreseeable future, assuring only a modest recovery in the nation's housing sector, at best. See our new Housing Forecast; go to: http://www.realestateeconomywatch.com/category/housing-forecasts/forecasts/
Both home sales/construction and home prices have fallen precipitously during today's housing recession. Thus, for us to proclaim a complete recovery in the today's housing sector, both home sales/construction and home prices must stabilize and begin their ascent.
Just a half year ago, the U.S. financial system was on the brink of collapse; the economy was headed towards a Depression; and the housing sector was in disrepair. Today, everything seems to be nervously falling into place for both the economy and the housing sector.
There has been a great deal of housing data released this past week to digest; some good news and some bad news. Since many believe that the housing sector may have already bottomed out, we are particularly focused on any new information that can either confirm or deny this claim.
The recent release of the Case-Shiller home price index for March was disappointing news for the housing markets. Unfortunately, other recent home price measures-- the FHFA purchase-only home price index and the median price for existing homes also disappointed the markets.
With most housing measures showing improvement in recent months, there is one measure that is bucking the trend- mortgage applications to purchase homes.
One fifth (21.9 percent) of all American homeowners have negative equity in their homes, a 4.3 percent increase over the fourth quarter of last year, as property values continued to fall nationally at an alarming rate.
Looks like last year's first-time homebuyer tax credit-the one the housing industry pooh-poohed because it required buyers to pay it back over 15 years-is doing a lot better than most people expected.
In the era of relaxed underwriting our nation's homeownership rate climbed to 69.2 percent at the peak in 2004. Today, a sharp downturn and tight underwriting conditions have exerted downward pressure on the homeownership rate which is currently hovering around 68 percent and falling. A reasonable question is: what should the nation's homeownership rate be?
Commercial real-estate loans are going sour at an accelerating pace, threatening to cause tens of billions of dollars in losses to banks already hurt by the housing downturn. The delinquency rate on about $700 billion in securitized loans backed by office buildings, hotels, stores and other investment property has more than doubled since September to 1.8% this month, according to data provided to The Wall Street Journal by Deutsche Bank AG. While that's low compared with the home-mortgage delinquency rate, it's just short of the highest rate during the last downturn early this decade. Some experts say it now looks as if the current commercial real-estate slump will rival or even exceed the one in the early 1990s, when bad commercial-property debt played a big role in dragging the economy into a recession. Then, close to 1,000 U.S. banks and savings institutions failed. Lenders took about $48.5 billion in charges on commercial real-estate debt between 1990 and 1995, representing 7.9% of such debt outstanding.
Although housing demand is primarily weak today because of non-population factors such as falling home prices, job losses, decreased wealth and declining consumer confidence, population factors are also contributing to sluggish demand. Today’s recession has influenced population changes that are negatively impacting housing demand
The nation’s battered labor market took another hit this past week as employers cut another 598,000 jobs off of U.S. payrolls in January.
As the nation’s housing sector continues to sink, we are becoming increasingly preoccupied with monitoring and interpreting housing data. We are looking for any positive sign that the housing markets are turning the corner and recovery is within sight.
Like a tired heavyweight boxer receiving blows to the head, some crushing economic reports released this past week kept the economy and housing markets in retreat and further away from recovery. The first blow was the December new home sales release which saw new home sales plummet 14.7 percent to an unimaginable 333,000 annualized units.
Selling foreclosed properties after lenders have taken possession—known in the business as REOs or real estate owned properties—is not for everyone. Prices are lower than market values, reducing commissions. Then there’s the cost and stress of cleaning up and maintaining properties that are usually ill-maintained if not outright trashed. Finally, collecting money from slow-paying banks is a pain.
Here are some signs that are likely to signal a market turnaround for the housing market. We define a turnaround as a steady increase in home sales from a trough.
Economic and housing indicators for this past week reveal the same old story—the recession is getting deeper and a recovery for the housing sector is not yet close. Retail sales for December fell 2.7 percent, worse than expected. This report suggests an even more severe retreat in consumer spending than previously expected. Excluding automobiles, retail sales fell by a whopping 3.1 percent for the month. This report does not bode well for future consumer spending and suggests that we are likely in the depths of the recession.
Commercial real estate is finally joining the party. Even though there has been no meaningful overbuilding in commercial real estate, the outlook for the industry has seriously dimmed. The retail and office sectors have turned down with vacancies rising. And the industrial sector is not far behind. A tightened credit market and a slumping economy are to blame.
The U.S. economy enters the New Year with momentum of a recession getting deeper not shallower. Most economic indicators reflect an economy contracting at an accelerating pace.