Amazing: Existing Home Sales Finally Beat Expecations
Wow, for once sales of existing homes in America beat the Street and increased 7.7%. Its not moving the market today and the crappy news is that the median price of a previously owned home dropped 5.1% to $168,300 from $177,300 in August 2010.
However any positive is a huge win for our depressing housing sector, we'll take whatever we can get.
Mastery Sponsors - Become one Today
The 411 via Bloomberg.com -- Sales of previously owned U.S. homes rose more than anticipated in August as investors scooped up distressed properties with cash.
The 7.7 percent increase left purchases at a five-month high 5.03 million annual rate, the National Association of Realtors said today in Washington. The August pace compares with a peak of 7.08 million in 2005, before the housing boom turned into a subprime-mortgage bust that dragged the economy into an 18-month recession.
“Housing’s been down for so long, we should take whatever good news we can get,” said Brian Jones, an economist at Societe Generale in New York, whose forecast was among the highest in the Bloomberg survey. “Interest rates are low and pricing is attractive and people are responding.”
While foreclosure-driven price declines and record-low mortgage rates are preventing a renewed slump in sales, companies like Lennar Corp. (LEN) say weaker confidence and limited access to financing are limiting demand. As the Federal Reserve meets today to consider ways to bolster the economy, cheaper borrowing costs are doing little to spur housing, which since 1982 has fueled every recovery except the current one.
The median forecast of economists surveyed by Bloomberg News called for a 4.75 million rate. Forecasts in the survey of 74 economists ranged from 4.5 million to 4.99 million.
Stocks fell, sending the Standard & Poor’s 500 Index down for a third day, as investors awaited a Fed announcement that may signal more stimulus for the recovery. The S&P 500 dropped 0.5 percent to 1,196.18 at 11:05 a.m. in New York. Treasuries rose, pushing down the yield on the benchmark 10-year note to 1.92 percent from 1.94 percent late yesterday.
Median Price Falls
The median price of a previously owned home dropped 5.1 percent to $168,300 from $177,300 in August 2010, today’s report showed.
Existing-home sales, tabulated when a contract closes, rose 19 percent from the same month last year.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- China Races To Rescue Stocks As Margin Mania Unwind Wreaks Havoc | ZeroHedge
- A Short History: The Neocon "Clean Break" Grand Design & The "Regime Change" Disasters It Has Fostered | ZeroHedge
- Desperate Greeks Resort To Scavenging Through Garbage To Find Food | ZeroHedge
- The Best And Worst Performing Assets In June And The First Half Of 2015 | ZeroHedge
- Next Steps For Greece: The Complete Post-Referendum Roadmap | ZeroHedge
- Non-Seasonally-Adjusted ISM Manufacturing Plunges To 2015 Lows As Production Tumbles | ZeroHedge
- Current Oil Price Slump Far From Over | Financial Sense
The most relevant financial news and articles from the Internets
- Here's how people are creating the bizarre 'sunburn art' that's taking over... | Business Insider
- THE DRONES REPORT: Market Forecasts, Regulatory Barriers, Top Vendors, And Leading... | Business Insider
- Cyprus stages play for peace at reopened landmark | Business Insider
- The 10 most important things in the world right now | Business Insider
- Death toll from Indonesia military plane crash... | Business Insider
- The 106-year-old British stockbroker who saved 669 children from the... | Business Insider
- Crocodile 'nanny' brings reptile back from... | Business Insider