So has anyone bothered looking at the latest Case Shiller Indexnumbers for homes? It just so happens that it shows prices are up in almost all of the twenty markets it surveys. Also in that same index we see gains for the fourth straight month in a row. Nearly every major housing index has shown that after markets bottomed out earlier this year they are starting to climb and climb steadily.
Sound good? It’s better than it sounds actually. The NAR had a big leap in re-sales of existing homes in the previous month; it was up almost 9.5%. Housing sales in the same area came in almost 9.2% higher compared to just one year ago. Mainly helped out by the first time home buyers making sure they have contracts that qualify for the 8’000 tax credit that could end in about four weeks.
Wait it gets better….. Recently released reports show that unsold home inventories dropped everywhere from a 9 month market to a 8 month market and a 6 to 7 month market is considered to be stable and viable.
Consider that a 30 year fixed mortgage is averaging 5% as well as a 15 year loan is averaging 4.5% and it is easy to understand why new home loan applications were up nearly 5% last week according to the MBA survey.
To top it all off the GDP grew by 3.5% in the third quarter and many consider the gross domestic product to be the biggest indicator of total economic viability and also pointing to a possibility of this recession being over. This is outstanding news for anyone who has even played vaguely with the best time to buy a home.
Unfortunately not all the news we have to report is good, but this news is honest and therefore must be reported. It seems new housing sales dropped without warning 3.5% in the month of September. Also reported by the Conference Board consumer confidence is down as it was last month. I think this will be attributed to concerns over job loss but in my opinion it could be largely related to approaching holidays and costs that always bring anxiety during this time of year.
So there it is, very much a mixed bag of good and bad where the economy is and particularly the housing market in both specific areas and as a whole. We can not assume that this, housing crisis, economic recession, or job market loss will simply be over with one poll or one bill or one week all of these things must be considered and given time, personally I am optimistic.
If we as consumers continue to have confidence in our markets and demand more consistent treatment of us as consumers I think we will be just fine.
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