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Do you take this as a good sign?

http://news.yahoo.com/s/ap/20090727/ap_on_bi_ge/us_new_home_sales

Answer Question
 
Anonymous

Asked by Anonymous at 11:20 AM on Jul. 27, 2009 in Politics & Current Events

Answers (11)
  • Anonymous

    Answer by Anonymous at 11:20 AM on Jul. 27, 2009

  • "WASHINGTON – New U.S. home sales rose by the largest amount in more than eight years last month, in another sign the housing market is finally bouncing back from the worst downturn in decades.

    The Commerce Department said Monday that sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000.

    It was the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000."
    Anonymous

    Answer by Anonymous at 11:30 AM on Jul. 27, 2009

  • Hope so.
    Carpy

    Answer by Carpy at 11:32 AM on Jul. 27, 2009

  • "The median sales price of $206,200, however, was down 12 percent from $234,300 a year earlier and down nearly 6 percent from $219,000 in May."


     I think there will be more hope with these numbers begin to stabilize/so signs of gain.

    grlygrlz2

    Answer by grlygrlz2 at 11:38 AM on Jul. 27, 2009

  • Also, new home sales(which is what this article is refelctive of) do not refelct foreclosures, short sales, etc... So, we will also need to see signs of the the foreclosure market/resale market showing improvement over a period or 'trend' to be hopeful for the future. jmo
    grlygrlz2

    Answer by grlygrlz2 at 11:40 AM on Jul. 27, 2009

  • Yes. Our housing market has been on the upswing for the past several months. 4702 homes closed in the month of June, which is more than any month ever, even more than the amount of sales during the 2004-2005 housing boom. Things here are staying on the market a matter of days or a week, when they used to sit for months.
    JulieJacobKyle

    Answer by JulieJacobKyle at 12:12 PM on Jul. 27, 2009

  • Yes and No. I don't see all those people out of work buying homes. The people who are buying new homes are those with good jobs and money for a down payment. The housing market won't be what helps them get jobs.
    The good is that as homes sell it helps to raise home prices returning a little bit of equity people have lost.
    itsmesteph11

    Answer by itsmesteph11 at 12:18 PM on Jul. 27, 2009

  • Will this put people back to work who lost their jobs?
    Anonymous

    Answer by Anonymous at 12:55 PM on Jul. 27, 2009

  • Well, it makes sense - home prices have dropped so LOW that you can get great BARGAINS.

    I don't think for a moment that this is an indication that the economy is better and people's financial well-being has risen.

    The houses cost less, that's all.

    Also, there are some hidden details:

    When a house sells for far less, it automatically LOWERS the value of neighboring homes.

    As a person who has been trying to sell our previous home for 2 1/2 years, let me tell you: the buying of a house does NOT help the previous owner when that house was a foreclosed home. And with the precipitous fall of home prices, many of us must do a "short sale" - sell the home for far less than we OWE on it. We owe $500,000 but the buyers are offering $325,000, so we must beg our bank to agree to it AND we must max out our credit cards to help pay the bank the rest of the difference.
    So, a short sale does NOT help the home seller get ahead
    waldorfmom

    Answer by waldorfmom at 1:15 PM on Jul. 27, 2009

  • For cities where growth has slowed, this does help the overall economy. Our valley grew really fast until the prices went way up. Then for a few years, people didn't want to move here because the housing was so expensive. Now that prices have gone down, people are coming back. A lot of these new home sales are people moving here, shopping in the grocery stores, buying furniture, paying landscapers, etc. Also people who were renting can now afford to buy, and they are putting money into these homes. We just put over $40,000 into the bank owned house we bought, and it went to local businesses who did our tile, carpet, counter tops, garage cabinets, concrete work, glass and mirrors, landscapers, painters, and new appliances and furniture. Growth does help everyone.
    JulieJacobKyle

    Answer by JulieJacobKyle at 1:17 PM on Jul. 27, 2009

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