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Home prices rise in February!Home prices rise in February!
StockMan69 said: "The first good news in a long time as [url=http://real-us.news.yahoo.com/s/ap/20080324/ap_on_bi_ge/economy;_ylt=Aqow.bk5ctXKMfm7GxPrUtxv24cA]home sales show an increase[/url] in February.
[quote]
The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It marked the first sales increase since last July, but even with the gain sales were still 23.8 percent below where they were a year ago.
Prices continued to slide. The median sales price for single-family homes homes and condomiums dropped to $195,900, a fall of 8.2 percent from a year ago, the biggest slide in the current housing slump. The median price for just single-family homes was down 8.7 percent from a year ago, the biggest decline in four decades.[/quote]
Not exactly great news but it does represent the first sign of an improvement."
AlfredSokol said: "Actually prices were lower but sales were up. So not really "good news" just not as bad as usual."
Heather said: "Either way you look at it, at least a few less homes are sitting empty - open to scrap metal thieves and the like.."
Maverick Investor said: "Any port in a storm..."
AlfredSokol said: "[QUOTE=Maverick Investor;66461]Any port in a storm...[/QUOTE]
Exactly. Even a small sign that the weather is lightening up must be considered good news these days."
StockMan69 said: "ARM resets have not been half the problem people were expecting. Perhaps there is a chance for recovery yet."
AlfredSokol said: "People are buying houses out of foreclosure. Not really a great sign in some ways. But it's a start."
electronicsseller said: "it's not really "good news" since the sales are up, though it does represent the first sign of an improvement."
AlfredSokol said: "When everything has been awful, any glimmer of hope represents something to smile about. Maybe the bottom is being reached?
ARM resets haven't been as bad as expected."
ratAphooey said: "I am thinking about buying a house out of foreclosure."
newguy87 said: "I'm more inclined to focus on the 23.8% down year over year because it gives you a better view of the picture from some altitude. Also the NAR is like the fox guarding the chicken coop when it comes to these statistics, skewing them as they like. Although you could say that about any organization with statistics that directly impact their livelihood.
I'm not sure but I think they're still quite a bit of ARM resets going thru the middle of this year. And really you can't say much about that because I think in most cases people don't default right away, it may be months after the reset when the problems start to pop up. The other thing to watch is employment cause without a job or the looming specter of the possibility of losing the one you have, you're not gonna buy a house. Psychology plays a big role also and I'm not so sure that's turned yet. I'm thinking/hoping housing will bottom sometime between the end of 2008 to middle 2009."
ratAphooey said: "I do think that the Fed infused funds to avoid a meltdown of ARM resets. Any one else have opinions?"
newguy87 said: "Well one of the big reasons the Fed has reduced rates this far and may do a little more in the future is to help out with the resetting ARMs. If the Fed funds is lower the resetting ARM rate will also be lower so that should help some homeowners with lowering their payments. However the Fed doesn't have as much influence on the long end of the curve so even though ARM rates have gone down fixed 30yr mortgage rates haven't as much and have even gone up in some cases.
The gov't has increased the conforming loan limits from 417000, depending on the area you live in. So if you're in an area where the median home price is generally higher your conforming loan limit may be raised from that 417000 number so that your mortgage won't qualify as a jumbo mortgage (meaning a higher borrowing rate). However, I've seen banks that won't charge you the higher jumbo mortgage rate but you also won't get the lower rate as if you were borrowing under the old 417000. You'd get a borrowing rate somewhere in between. There's also 7000 tax credit being proposed for those buying a foreclosed home. Basically there are many different prongs that the gov't is using to try to lessen the blow which is helpful. But to me there has to be asset deflation (which the gov't seems to be preventing) to more normal levels. It's painful, it sucks but I think it's required."
ratAphooey said: "I hear you. That makes a lot of sense. :th_dblthumb2:
I am hoping the worst is over but you never know."
lil dickie said: "The point about asset deflation is true but that is gonna bring more pain and make people completely pessimistic. People get depressed when they lose money overnight especially on such a supposedly "safe" investment."
newguy87 said: "Well unfortunately most people have the idea that a home's value continuously appreciates which gives them the misconception that it's a safe investment. If you live in a house long enough (many many years) more than likely it's going to appreciate and that makes it a "safe" investment but if you only live in it a few short years or less than it's not as sure. And there would go that "safe" investment hypothesis. This last boom has given people the impression that a house appreciates practically every year you own it and that's just not the case. Just like the stock market the value can go up and down. Like I said asset price deflation is necessary and painful but after that happens we can than move up again on a more normal trajectory. Just like when you're a kid and have to take that disgusting tasting medicine it sucks but in the end it'll make you feel better."
StockMan69 said: "A house is a safe investment unless you have to move in a hurry because of death divorce of job loss. Then you haveta sell the house immediately and lose. Those are the people getting screwed the worst."
pranith said: "I think thats good news for all of the real estate investers. They will make some profits in this month of february due to increase in rates."
sr106 said: "yes, now it is a worth business for real estate investors....
now some of the people made lot of profits due to this business...."