So, The Good News Keeps on Coming

This article comes courtesy of the Denver Post and is written by Joe Richter of Bloomberg News -

Home resales continue slump
Purchases at slowest pace since Nov. '02

Washington - Sales of existing homes in the U.S. fell more than forecast last month, a sign that residential real estate remains mired in its worst recession in 16 years.

Purchases declined 3.8 percent to an annual rate of 5.75 million, the slowest pace since November 2002, from a revised 5.98 million in May, the National Association of Realtors said Wednesday. At the same time, the supply of homes for sale dropped for the first time this year and the median price rose for the first time in 11 months.

The housing slump, which slowed economic growth in the first quarter to the lowest level since 2002, is the biggest risk to the six-year economic expansion, according to Federal Reserve policymakers.

"There's no evidence we've hit bottom yet," said James O'Sullivan, senior economist at UBS Securities LLC in Stamford, Conn., who correctly forecast the drop in sales.

While "the inventory numbers are encouraging," he added, "I wouldn't celebrate yet."

Resales were projected to fall 2.1 percent to a 5.86 million annual rate from a previously reported 5.99 million in May, according to the median estimate of 73 economists in a Bloomberg News survey.

The market "is bumping along the bottom," Wachovia Corp. chief economist John Silvia said.

 

All this negative news and yet the housing market is still chugging along.  I can tell you that the housing market is not as strong as it once was, but there are still a bunch of buyers out there.  For example, I am working with some buyers and we found a home that was priced very well.  We determined that it was a good buy and made an offer, only to find out that we were 1 of 15 offers on the same home.   My point is that there are still buyers out there - people just can't be to aggressive with their pricing right now because the buyers are waiting for the seller's to come to them  And, they will wait. 

Looking to buy a new home?  Read this article first - it provides deep insight into the process of buying a new home and offers many thought provoking questions regarding this purchase.   Go to www.denvernewhomebuyers.com - Vital Information about the Process, Plus Tips on Maximizing the Purchase.

Interested in Searching the Metro Denver Area MLS for Free? => Go to www.seanreilly.myhomecards.com and sign up for a Homecard.

Interested in knowing the Value of your Home? => www.seansellshouses.com/freecma.htm

Interested in knowing what people have said about me being a Realtor? => www.seansellshouses.com/testimonials.htm

Sean Patrick Reilly

RE/MAX Southeast

303.512.0405

sean@seansellshouses.com

Double Major - Real Estate & Construction Management - University of Denver '91

Comments

[honda-radio]

Thx! :)

[John Rey]

I want to share this great news with you guys. I found a site that submit your list to top classified sites like google, trulia, vast and more all at once by making only one ads to them.
Check out http://homes.relatedlistings.com