Despite Joe Lavorgna's seemingly gigantic cognitive dissonance in the face of this report, the pending home sales data collapsed in September (and remember this is before the shutdown and was heralded at the time as buyers rushing to buy before the risk of the shutdown slowed acceptances). Affordability, argued by some serial extrapolators as still being 'relatively' positive - has drastically weighed on housing at the margin just as we argued previously. This is the first annual drop in 29 months, the biggest drop in 40 months, and the biggest miss against expectations in 40 months. Even the typically full of spin, NAR Chief economist had to admit "this tells us to expect lower home sales for the fourth quarter, with a flat trend going into 2014." Apparently, if one is to believe the spin, overheard everywhere in September: "Hmm, government may shut down next month - let's not buy a house."
Of course, NAR Chief Economist seems to have found an excuse by time-shifting his narrative...
NAR chief economist, said concerns over the government shutdown also played a role. “Declining housing affordability conditions are likely responsible for the bulk of reduced contract activity,” he said. “In addition, government and contract workers were on the sidelines with growing insecurity over lawmakers’ inability to agree on a budget. A broader hit on consumer confidence from general uncertainty also curbs major expenditures such as home purchases.”
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5 comments:
Did you all ever stop to think! It's your over priced barns your trying to sell?
I was talking to a local real estate agent who said not to believe everything that you read on the internet. So what do you think?
anonymous 11:46, I'd bet that same, (and many others) neglect to mention to their clients the crime rate in Salisbury/Wicomico County as well.
My Mother In Law sold her home for at least $100,000.00 less than it was worth.
If anyone believes thee's any kind of recovery in the real estate market, they're nuts.
As for anonymous 11:35, it's no wonder so many are calling you guys Libtards. Never accountable for anything and always blaming it on something it is not.
According to the free real estate publications,local homes are outrageously overpriced.I've talked to several sellers and brokers and no one wants to budge on their price.They want to get the same price they intend to pay for their new home without any additional mortgage payment.Why do you suppose they put a for sale sign up?
I don't believe you can give out crime statistics and pedophile iinformation to real estate clients. I think they would call that steering. Sometimes the consumer has to do some homework too.
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