The economy, is it good or bad. (Page 177/181)
Phranc JAN 28, 10:25 PM

quote
Originally posted by 84Bill:

Phranc

New home sales: Biggest drop ever
Weak December sales caps 2007's record slide, with prices for the month off sharply from a year earlier.

NEW YORK (CNNMoney.com) -- New home sales posted the biggest drop on record in 2007, according to the government's latest look at the battered housing market, as a year that saw a meltdown in the mortgage market and a drop in home values ended with yet more signs of weakness.

December sales came in at an annual rate of 604,000, the Census Bureau report showed, down from 634,000 in November, which was also revised lower.

The reading was well below the consensus forecast of 645,000, according to economists surveyed by Briefing.com.

The weak December sales left full-year new home sales at 774,000, down 26 percent from the 1.05 million sales in 2006. That was the biggest drop since the government started tracking new home sales in 1963, surpassing the 23 percent decline posted in 1980.


So not only do you troll me yet again but you post something already posted.
84Bill JAN 28, 10:30 PM

quote
Originally posted by Phranc:

So not only do you troll me yet again but you post something already posted.



New home sales: Biggest drop ever
Weak December sales caps 2007's record slide, with prices for the month off sharply from a year earlier.

updated 1 hour, 44 minutes ago

WASHINGTON - New home sales plunged in 2007 by the largest amount on record while home prices tumbled sharply in December. Analysts forecast more trouble in 2008 as housing tries to emerge from its worst slump in more than two decades.

The Commerce Department reported Monday that sales of new homes dropped by 26.4 percent last year to 774,000. That marked the biggest decline on record, surpassing the old mark of a 23.1 percent plunge in 1980.

The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn.
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And the slump in sales and prices appeared to be worsening at year’s end. December sales fell by 4.7 percent, a bigger-than-expected drop, while the median price of a home fell by 10.4 percent last month, when compared to December 2006, the biggest 12-month decline in 37 years.

“It looks like the floor fell out of the housing market in December,” said Mark Zandi, chief economist at Moody’s Economy.com. He said the current slump is already on par with the deep housing downturn of the 1980s and could end up being the worst in the post-World War II period.

The data on new homes followed earlier reports that sales of existing homes dropped 13 percent last year, the biggest decline since 1982, while construction of new homes and apartments fell by 24.8 percent, the largest drop since 1980.

Zandi predicted that sales of new and existing homes will likely hit bottom this spring and that construction will level off by this summer. But he said prices were likely to keep falling for the entire year as weak demand forces sellers to cut asking prices even further to move homes.

Housing is slumping now after a five-year boom. Demand for both new and existing homes hit all-time highs for five straight years, ending in 2005, the peak of the boom. New home sales fell by 18.1 percent in 2006. The sales level last month is now down by 56.5 percent from the monthly peak hit in July 2005.

The prolonged slump in housing is raising concerns that the weakness could be severe enough to push the country into a full-blown recession. In an effort to guard against that threat, the Federal Reserve cut a key interest rate last week by the largest amount in more than two decades with a further rate cut expected on Wednesday when the Fed completes a two-day meeting.

[This message has been edited by 84Bill (edited 01-28-2008).]

ditch JAN 29, 12:19 PM
I heard on the radio this morning that over 2 million ARM's are a due to reset this year and the next. Knowing that, it just amazes me that banks aren't being more aggressive about refinance these people into fixed rate mortgages. Strictly from a business standpoint, it's in their best interrest for these people to keep their homes. A bank doesn't want to own a foreclosed property, especially in the current market where home sales are at record lows.
cliffw JAN 29, 12:25 PM

quote
Originally posted by ditch:
I heard on the radio this morning that over 2 million ARM's are a due to reset this year and the next. Knowing that, it just amazes me that banks aren't being more aggressive about refinance these people into fixed rate mortgages. Strictly from a business standpoint, it's in their best interrest for these people to keep their homes. A bank doesn't want to own a foreclosed property, especially in the current market where home sales are at record lows.



Hmm...does this just mean that a buyers market is upon us ? Home sales set to shoot through the roof ?
My, I love the way the economy works...if I can work it.
ditch JAN 29, 12:35 PM

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Originally posted by cliffw:


Hmm...does this just mean that a buyers market is upon us ?



IMO, the answer to that is a 100% yes. I'm keeping a close eye on this myself because I plan on buying another house when prices hit rock bottom.

In general, the worse things get on the foreclosure front, the lower prices go, and the better it is for me if I want to do some house flipping in the future. Even with that in mind, I still don't want to see things continue to get worse.

[This message has been edited by ditch (edited 01-29-2008).]

Phranc JAN 29, 12:35 PM

quote
Originally posted by cliffw:


Hmm...does this just mean that a buyers market is upon us ? Home sales set to shoot through the roof ?
My, I love the way the economy works...if I can work it.



Oh yes it will be a buyers market. Prices are down and may keep going down. Stock is high and interest rates are down. Not so great for sellers though. How ever if you are selling and buying its still good.
aceman JAN 29, 12:48 PM
Yes, it'sa's an interesting/unique housing market right now. I owe about $110,000 on my house and a personal loan. My house is valued at $235,000 because of the housing market values 2-3 years ago. I'll list at $185,000. I'll get offered $165,000-$175,000 and I'll take it, walking away with about $50,000 in my pocket. My neighbor, who bought and owes $140,000 on his house that is valued less than mine, can't take less than $150,000 on his house without taking it in the shorts for a loss.

I bought my house at a good value and I'll sell my house at a realistic value that some buyer will feel that he got a deal on.

My neighbor is left sucking hind tit. Quite a unique market place and a buyers market.
cliffw JAN 29, 12:58 PM

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Originally posted by aceman:
Quite a unique market place and a buyers market.


Why is this thread 45 pages long ? Are we talking about a buyers economy or a sellers economy ? The economy is in your back pocket. That is why the government is thinking by putting money there (tax rebate) that they are helping. If that were so then it would mean the more money they gave us the better the economy, . I think I will invest my money inside my mattress, .
The economy is based on production, not spending.
84Bill JAN 29, 01:13 PM

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Originally posted by cliffw:
The economy is based on production, not spending.



We dont really produce anything here in the U.S. Some windows, maybe some car parts and a ton of junk food but no real industrial strength is left, just a hodgepodge of odd and ends.. Although we do have the mighty dollar in our corner.
cliffw JAN 29, 01:19 PM

quote
Originally posted by 84Bill:
We dont really produce anything here in the U.S.


We ? Do you have a mouse in your pocket ?