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View Full Version : Pending home sales rise 8.2 percent in February



MNeagle
5th April 2010, 08:28 AM
WASHINGTON (AP) -- The number of buyers who agreed to purchase previously occupied homes rose sharply in February, far exceeding expectations, in a sign that the housing market may be coming back from the winter doldrums.

The National Association of Realtors said Monday its seasonally adjusted index of sales agreements rose 8.2 percent from January to a February reading of 97.6. January's reading was revised slightly downward to 90.2.

The report "may signal the early stages of a second surge of home sales this spring," said Lawrence Yun, the trade group's chief economist.

Economists surveyed by Thomson Reuters had expected the index would fall slightly to 90.3. The index is considered a barometer for future sales activity because there is typically a one- to two- month lag between a signed sales contract and a completed deal.

A reading of 100 is equal to the level of sales activity in 2001, when the index started.

Home sales had been sluggish during the winter, partly because shoppers felt less rushed after lawmakers extended the deadline to qualify a tax credit. First-time buyers can get a tax break of up to $8,000 if they sign a contract by April 30. Lawmakers also added credit of $6,500 for existing homeowners who move.

The biggest month-to-month increase was in the Midwest, where pending sales rose by nearly 22 percent. Sales posted gains of 9 percent gains in the South and Northeast, but fell nearly 5 percent in the West.

http://finance.yahoo.com/news/Pending-home-sales-rise-82-apf-811331430.html?x=0

Olmstein
5th April 2010, 08:33 AM
It should be pointed out that pending sales are not sales, and the National Association of Realtards are a bunch of shills.

MNeagle
5th April 2010, 09:14 AM
Thank you, good Point Olmstein.

Bluegill
5th April 2010, 09:35 AM
It should be pointed out that pending sales are not sales, and the National Association of Realtards are a bunch of shills.

Yep. I don't practice anymore, but I am still a licensed Realtor in MI. I hate NAR. They cook the books on stats just like the Government. I have been hearing from NAR and the Government that the housing bottom was in and that buying a home was a good investment for 5 years now. What a joke...

Most of those "pending" sales will fall apart. Most people just aren't credit worthy.

The reason there was even an increase was because of that stupid first time buyer tax credit. Like the cash for clunkers, it put a lot of stupid people who don't think things through to go into debt they really can't afford.

All of that was to attempt to continue to prop up still overpriced housing. The correction is not over by a long shot. There is still a lot of shadow inventory left over from the sub-prime collapse. Add to that the Alt-A collapse that is imminent sometime later this year when the bulk of those loans start resetting their interest rates.

Pile on top of that continued real world unemployment of 20+%, along with those who still have employment taking pay cuts and/or reduced hours. It's not gonna be pretty...