Home Sales Plunge In March

[Purveyor]

Source: CNNMoney

NEW YORK (CNNMoney.com) -- Problems in subprime mortgages caused a sharp drop in home sellers being able to find buyers for their homes in March, according to a trade group report Tuesday that showed the battered real estate market was much weaker than expected.

The National Association of Realtors' Pending Home Sales Index fell 4.9 percent in March, following a 1.1 percent increase in February. The index was down 10.5 percent from the March 2006 reading.

Economists surveyed by Briefing.com had been looking for a 0.4 percent rise in the index, which tracks the number of existing homes for which a sales contract has been signed but a closing has not yet taken place.

"Although the weather improved in March, we're starting to see the effects of a decline in subprime lending and tighter lending standards," said a statement from David Lereah, the chief economist for the trade group. "Home sales will be relatively sluggish in the second quarter, but a modest uptrend should resume during the second half of this year."



Read more: http://money.cnn.com/2007/05/01/news/economy/homesales/?postversion=2007050110

[tanyev]

1. "a modest uptrend should resume during the second half of this year"

Maybe it would help if we all clapped our hands and yelled, "I believe!"

[Tempest]

4. That is a hysterical claim to make

Considering this:

"The National Association of Realtors' Pending Home Sales Index fell 4.9 percent in March"

"Economists surveyed by Briefing.com had been looking for a 0.4 percent rise in the index"

[Warpy]

2. Yeah, peace and prosperity are just around the corner

with three cars in every garage, limitless fried chicken and apple pie, and a McMansion for all.

I'm just grateful this is a slide and not a crash.

So far.

[YOY]

3. I predict I will magically be able to own by the end of the year!

Because depite the fact that there is no way I could ever own a rediculously priced house, the economy is doing great!

[cliss]

5. Not to worry,

The way things are going, I predict a very large real estate correction ahead.
I don't even need a crystal ball to see that many, many people are going to lose their homes. They paid too much, the mortgage was a bad one, and they are going to bite the bullet.

So the prices will come down. Those who waited will have some really nice opportunities coming up.

[YOY]

6. Sweet Jebus I hope so

I can't take renting much more.

[pimpbot]

7. You hope people will lose their houses?

Kinda seems like the old "I'm gunna git mine!" attitude we see so often from the Bush cabal.

[YOY]

8. No, but I hope the prices go down

There are a whole mess of folks that got suckered by those variable rate mortgages. I feel for them. They got screwed by right bastards that will hopefully get theirs.

Is it wrong to not like to rent and to be disgusted by overinflated prices?

[LisaM]

11. The people who drove housing prices up so much that I can't afford to buy?

What am I supposed to hope for? That I continue to be priced out of the market?

[YOY]

12. Stop being so selfish!

You're just like the FReepers! :sarcasm:

[QC]

18. I agree--ny sympathy for flippers from me.

I live in a place where these greedy pigs have made it pretty much impossible for people who actually work for a living to afford even a modest home.

Now a lot of those flippers have become floppers, and I am enjoying their discomfort. Hell, I hope to see them picking through the trash, offering to trade their excess condos for food.

[cliss]

16. Not at all.

Yes, I'm actually hoping some of these people will get out of these mortgages.

These mortgages are nothing more than traps. I've read several stories about how the "homeowner" pays hidden fees, hidden costs, unbelievable interest rates. THEN as if that isn't bad enough, the mortgage company moves in to start foreclosure proceedings if the "homeowner" is late by maybe 1 payment.

These people are actually better off walking away from some of these Loan Shark Mortgages.
They're better off starting fresh, with a better loan.

I hate to see people lose their homes. But many of these subprime mortgages should never have been written.

[dysfunctional press]

14. very doubtful.

if home prices in most areas fall by much more than 10% or so, investors will begin snapping them up.

people who think that home prices are going to drop like a rock and are waiting to buy then, are going to be very disappointed. especially since intrest rates will probably go up faster than home prices will come down.

[1932]

19. Investors are not going to invest in a market that's dropping.

Investors need a return on their investment, not a loss.

[WannaJumpMyScooter]

15. Hey, by the end of the year you may

be able to move into any of the abandoned houses.

Look at it that way.

[FatDave]

9. I know it's risky, but I'm trying to buy a house right now

Of course it's 10 acres in the country, a steal at today's prices, but still I worry. I wonder if a democratically controlled government will bail out the homeowner sitting on a $200,000 mortgage when his/her property is valued at $50,000....

Oh well. At least we can grow some of our own food. Until global warming stops us anyhow.

[Wise Doubter]

13. 10 acres ? Make sure you get some bee hives....

Seriously ! THEN you`ll be able to have your garden{s} flourish.

[Sapere aude]

17. I'm selling my 20 acre home in the country. I'm moving into a much more modest home and paying off

my debts. I don't feel that it is good to have too much debt in the coming years. With China owning our nations debt and the dollar being replaced by the Euro, the future seems murky to me.

[demnan]

10. The problem that will happen now

is that with the war costing billions and the junk loans falling in, money is going to get pretty tight now. I wonder if we'll see 18% interest rates like we did in the 80's. If that's the case, it might not be good to wait too long to buy a home.

[roamer65]

20. I hear Helicopter Ben Bernanke getting his chopper warmed up.

Dropping bales of cash to all...LOL.:sarcasm: