Existing home sales soar in April

[jpak]

http://money.cnn.com/2010/05/24/real_estate/existing_home_sales/?postversion=2010052412

NEW YORK (CNNMoney.com) -- Existing home sales soared in April as home buyers scrambled to claim the tax credit that expired at the end of the month, according to a real estate industry report released Monday.

The National Association of Realtors reported that existing home sales jumped 7.6% last month to a seasonally adjusted annual rate of 5.77 million units, up from the upwardly revised rate of 5.36 million in March. Sales year-over-year were up 22.8%.

The gain was widely anticipated, but still beat forecasts. Analysts surveyed by Briefing.com were looking for resales in April to rise to an annual rate of 5.65 million units.

"The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market," said Lawrence Yun, NAR chief economist. "For people who were on the sidelines, there's been a return of buyer confidence with stabilizing .

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[NJmaverick]

1. K & R!

[jpak]

2. Let the unreccing begin!

:D

[NJmaverick]

4. Yes, can't let the TRUTH/FACTS ruin their propaganda campaign

[Scurrilous]

6. LOL

:thumbsup:

[DJ13]

3. So did inventories

Its a wash.

[nichomachus]

5. So that means were headed for another slump

Just like car sales did when the cash for clunkers program ended. The tax credit energized all the pent-up demand. That pool of potential buyers has now been exhausted.

[jpak]

7. We are on the brink of Depression! Cue the Dust Storms, Grapes of Wrath

Cirrhosis of Liver!

Milk of Magnesia!

:D

[nichomachus]

9. Well, you can mock all you want, since it doesn't fit your agenda

But there is only so much demand -- and so much money available. If you run a program now that make it attractive for people to buy now, then they will do so, and create a false jump in sales. However, once the incentive goes away, then the pent-up demand has been drained off and sales will go below what they normally would have been. It happened with the auto sales and it will happen with home sales.

Only a very naive person or a pro-Obama cheerleader would argue otherwise.

Have fun.

[jpak]

10. pro-Obama cheerleader!

not allowed

:D

[Subdivisions]

8. GREAT NEWS! People with excellent credit or lots of cash are snapping up

houses on the chance that prices have bottomed out. They'll be sorry in a year when they're upside down on the houses they bought last month. That'll bring more foreclosures. Yay!

Also, another reason EXISTING home sales soared is because NEW homes aren't being built. Until existing inventory is exhausted (and I've read there's something like 9 years of inventory) and new homes are being built, I'll hold my optimism for a sustained recovery and economic growth in reserve.