The number of contracts to buy previously owned U.S. homes rose 8.2% in May…almost three times as much as forecast as falling prices made properties more affordable.
As always, the numbers will be revised downward at a later date. Anything can be “forecast”.
A lot of those are short sales offers that will never go through.
Also an increase from April to May is hardly surprising.
It happens most every year.
A “contract” means squat. Anyone can initiate a contract who is of legal age (and sound mind). Closing the deal is nowhere near that number.
Dead for me the month of July every year.
Been almost a week but it is vacation period and OK.
For our industry, it is better that they initiate contracts that never close. Every inspection done on for a contract that doesn’t close = another inspection. A closing means the house won’t get inspected for another 7 years on average.
This is where you are way out of touch with the areas of the country that do not have a major population, say under 10M. A home must actually get an inspection, to benefit our industry. A large proportion of homes do not get an inspection, as they are REO, and agents tell them it’s either not needed, or just to not get one because the banks won’t renegotiate anyway. True, many are not buying the BS, but most are. This is the reality that all “center of the country” states deal with on a daily basis.
33% down in my area this May compared to last May per Assoc. Realtors news letter. Stan
Our industry “betters” the housing industry. The more we inspect, inform, advise the better off the overall market is going to be. I’m not talking just sales here, Im talking the overall general condition of homes. I believe there is a DIRECT and INSEPARABLE link between the active foreclosure market, and the maintenance/management of a home. Prices are reflecting (in part) the overall horrid condition of foreclosed homes. And as we all know, the condition worsens over time. The more we steer people away from mis-management/poor maintenance, the BETTER the market will respond over time.
That 8.2% increase tells me people are “investing” in homes. ( I would hope) An Investment implies an informed purchase, with a hard look to maintenance and further investment. If they are making purchase because “Its all I can afford right now, but I need a roof in 4 years” …you will be inspecting it again in three years as a foreclosure.
The numbers are almost meaningless if there is no reporting of the percentage of short sales offers included in that headline percentage increase.
Many short sale offers are not accepted by the banks.
People are looking for extreme deals and submitting lowball offers to the banks that probably will not be accepted.
At least that is the way it is in my area. YMMV
What I have been seeing, is many more people remodeling vs selling/purchasing. I have performed more remodel Draw inspections so far this year, then all of last year combined. People are getting tired of the crap housing on the market, and have decided to repair instead. The ones who are buying are the “investors” and wanna-be flippers, and they’re not paying for inspections. Only a small percentage are conventional sales. Much of what’s left are “fail sale”. Some people couldn’t afford a home if it was free. JMHO.
BOOM! Stealing this
Yes, I am listed there, and have never received a single inquiry from it.
The top RE company here in KC has lost over 3,000 agents in the last two years. Other companies have lost agents also. Perhaps as much as 50%. Home sales reflect that. Most home “sales” and “contracts” are from sales from bank to bank, and short sales. What Jeffery said is true.
Gee wilikers Mr. Wizard, is that why they have rasised membership dues?
No need to steal… I offer it freely!
Metals have paused shinning, hopefully for the foreseeable future, the shine is now creeping towards the Real Estate. “Believe it or not.” The last remaining hurdle is, of course the unemployment, which is always a lagging indicator.
Sean and i have been real busy this last month, Maybe the secret is out for TN
The Numbers over last year may look great
shows over 1500 (April 2004) closings
in the counties I operate
Closings as of April 2011