Previously Owned Home Sales in U.S. Drop for Third Month

[Purveyor]

By Lorraine Woellert - Dec 19, 2013

Previously (ETSLTOTL) owned U.S. home sales declined for the third consecutive month in November to the lowest level of the year as rising mortgage rates and a limited supply of properties discouraged buyers.

Purchases dropped 4.3 percent to a 4.9 million annual rate, the National Association of Realtors reported today in Washington. The median forecast of economists in a Bloomberg survey called for the pace to slow to 5.02 million. Still, the group projects 2013 will be the best year for the industry in seven years, with an estimated 5.1 million properties sold.

Rising prices and borrowing costs have put homes out of reach for many first-time buyers and a partial federal government shutdown in October may have delayed some purchase decisions. At the same time, builder confidence has picked up along with new construction, signaling gains in housing will be sustained.

“Part of the weakness was the government shutdown,” said Brian Jones, senior U.S. economist in New York at Societe Generale. “The vast majority of indicators we’ve gotten on housing are pretty solid.”

Estimates in the Bloomberg survey of 75 economists ranged from 4.9 million to 5.21 million.

more...

http://www.bloomberg.com/news/2013-12-19/sales-of-previously-owned-homes-in-u-s-drop-for-third-month.html

[MannyGoldstein]

1. Perhaps they're way overpriced

because the Fed spent $4 trillion bailing out banker bonuses by propping up asset prices?

[JoePhilly]

2. Or there is a limited supply, like

the article says.

[MannyGoldstein]

3. $4 trillion

That's a lot of dough.

[lpbk2713]

4. Apparently the damage from the GOP shutdown is still being assessed.

At least $24 Billion and rising.

Shame on the Dems if they don't drive this point
home when election time rolls around.

[Purveyor]

5. The shutdown did indeed have an impact on these housing numbers. eom

[frazzled]

6. And Generalissimo Francisco Franco is still dead

November and December have always been the slowest months for home sales. Since before the housing bubble and crash and after. Since forever.

I don't see this as indicative of much of anything at the moment. Probably just normal seasonal changes.