New-home sales

Housing Market Missing Link: 1st-Time Buyers

Likely Culprit:  Exploding Student Debt “Economists believe younger Americans now are much more likely to rent for longer periods than did earlier generations ” due not only to the rising home prices and high credit standards but also the high student debt levels and elevated levels of underemployment.” —Wall Street Journal (5/23/2014) With the caveat that...
Read More

Twin Cities Upper Bracket Showings Down

Leading vs. Lagging Real Estate Indicators The headline news about the housing market this week was the latest Case-Shiller numbers:  nationally, housing prices are up over 12% the last year. Meanwhile, closer to home (and in the trenches) . . . Twin Cities agents listing upper bracket homes (over $1.2 million) are bemoaning the lack...
Read More

Spinning — and “Backspinning” — the Latest Housing Sales Numbers

S&P Case-Shiller:  ‘Home Prices Rose 1.3% in April’ It’s well-known that various housing market cheerleaders (the National Association of Realtors; your friendly local Realtor?) have a tendency to put a positive spin on housing sales statistics. But, prominent housing bears tend to do the opposite (would that qualify as “backspin??”). Exhibit A:  Barry Ritholtz’s take...
Read More

June New Home Sales

Exactly Where Are All Those $206k New Homes?? As [new home] sales rose, median prices . . . continued to fall, slipping to $206,200 from $232,100 in June a year ago. –Jack Healy, “New U.S. Home Sales Rise Sharply as Prices Fall“; The New York Times (7/27/09) The big financial headline today is an unexpected...
Read More

Dec. New Home Sales

New-Home Sales Down (Again)According to the Commerce Department, sales of new, single-family homes decreased by 14.7% in December to a seasonally adjusted annual rate of 331,000. Frankly, given the economy, accelerating layoffs, etc., it would have newsworthy if new-home sales hadn’t dropped hard. Silver linings? Not if you’re a builder, a contractor, or a developer....
Read More