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 Pending Sales of U.S. Existing Homes Increased 4.1% in March

Created by:
Saul Klein, Business/Management ,  San Diego,  CA

Date: April 26, 2012, Number of Replies: 4


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Bloomberg:

>>
The index of pending home purchases rose 4.1 percent to 101.4, the highest level since April 2010, after a 0.4 percent gain in February that was revised from a previously estimated 0.5 percent drop, the National Association of Realtors reported today in Washington.

<<

http://www.bloomberg.com/news/2012-04-26/pending-sales-of-u-s-existing-homes-increased-4-1-in-march.html

Saul

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Lily Tracy Licensed Real Estate Agent,  Austin,  TX

Date: April 26, 2012

Good news from Bloomberg. Do you think its a sign of the recovery gathering steam?

Lily Tracy

Downtown Austin Real Estate

Vox Real Estate

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Robert King Licensed Real Estate Broker,  Saint Petersburg,  FL

Date: April 26, 2012

Saul in plan English, what do all these statistics mean to us out here working the street. "The index of pending home purchases rose 4.1 percent to 101.4, the highest level since April 2010, after a 0.4 percent gain in February that was revised from a previously estimated 0.5 percent drop, the National Association of Realtors reported today in Washington.
Is this kind of data what turns the market around or is this the kind of data the tells us the Market Has Turned Around and we need to get on board and Sell, Sell, Sell before we are priced out again??? Just want a straight up answer no ice.
Robert L. King
Saint Petersburg, Florida
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Tish Osborne Licensed Real Estate Agent,  New Port Richey,  FL

Date: April 27, 2012

I'm about 15 miles north of Clearwater. Overall sales, including single family, condos, mobile homes, etc., totaled just 870 for the first quarter; 307 of those sales fell in the under-$50,000 range. The average days on market were 119, the local board says.

That means bargain hunters. In March, the typical sale was 2-bed, 2-bath for $40,000. However, our board reports that 10 percent of the sales were in the $200,000-$500,000 range. Our local inventory has dropped to a 5-month supply.

 

According to the state organization, Florida Realtors, sales of existing single-family homes totaled 18,370 in March, down 5.7 percent compared to the year-ago figure. Looking at Florida's year-to-year comparison for sales of townhomes/condos, a total of 10,012 units sold statewide last month, down 12.4 percent from those sold in March 2011.

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Robert King Licensed Real Estate Broker,  Saint Petersburg,  FL

Date: April 28, 2012

So Tish what does all this mean to the market?

"I'm about 15 miles north of Clearwater. Overall sales, including single family, condos, mobile homes, etc., totaled just 870 for the first quarter; 307 of those sales fell in the under-$50,000 range. The average days on market were 119, the local board says.

That means bargain hunters. In March, the typical sale was 2-bed, 2-bath for $40,000. However, our board reports that 10 percent of the sales were in the $200,000-$500,000 range. Our local inventory has dropped to a 5-month supply.

According to the state organization, Florida Realtors, sales of existing single-family homes totaled 18,370 in March, down 5.7 percent compared to the year-ago figure. Looking at Florida's year-to-year comparison for sales of townhomes/condos, a total of 10,012 units sold statewide last month, down 12.4 percent from those sold in March 2011".

How does all this information play out in the economic outlook of the future American Homeowner? I'm still trying to figure out the typical 2 bed 2 bath selling for $40,000, I can only imagine what the home was worth 6 years ago. Why so low today? Seems to me anybody buying a 2 bed 2 bath in the last 6 years is not happy. Let's see Total sales in the first three months was 870 sales, that's 290 sales a month, right? 307 of those 870 sales per month sold for $50k or LESS which means on a monthly average 102 sales out of 290 sold for less than $50K, so we can assume this is the category that most all 2 bed 2 bath homes sold for per month. Which means that less than half the homes sold, SOLD for less than $50k, right? So where is the improvement in the market? Lets see if the average salespersons commission is 1.5% on an MLS 6% arms length transaction, which I'm guessing is NOT, because homes selling for under $50k are either in poor neighborhoods or bank repos, or a combination of both, which really means they were not in the best condition expected. There hast to be a reason for these homes to be on the market for 4 months (119 days) if only 290 are selling in one month. Now we don't know if these were financed or cashed out but we know at least less than 102 homes sold under $50k per month in the first quarter. So what is the average unknown listing commission per salesperson on a $40k property? If on average 1.5% (give or take a point or so) then that means each saleperson in the deal got somewhere in the neighborhood of $600 more less per sale. Wow, and how many hoops did the agents jump through to sell an obviously run down bank owned property? And we call this progress? Finally the poor can actually afford something in life. We need to be thanking these banksters for driving down the over loaned property values of 2006 to Qualified Entry Level Wage Earners. This is Capitalism at it's worst if you ask me, all at the manipulation of the Banksters looking out for the poor and down trodden, at the expense of the middle class.

Robert L. King
Saint Petersburg, Florida

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