Existing Home Sales Fall 3.1% In 2014

[Purveyor]

Source: Business Insider

Existing home sales rose less than expected in December and fell 3.1% overall in 2014.

In December, existing home sales rose by 2.4% to an annualized pace of 5.04 million.

Expectations were for the report to show sales grew 3% in December to an annualized pace of 5.08 million, up from November's pace of 4.93 million, which was a 6.1% decline from October.

For the full year, existing home sales fell 3.1% from 2013, totaling 4.93 million down against 5.09 million last year.




Read more: http://www.businessinsider.com/december-existing-home-sales-2015-1

[olddots]

1. 3 houses fell thru in our neighborhood last year .

The boom is a fizzle

[Roland99]

4. LOTS of new homes going in right around me.

No incentive to buy existing with all the new options all around.

[Yo_Mama]

2. The projections are for 2015 to be better

Not least because of the FHA changes - mortgage rates are favorable, but for those without a substantial deposit, the very high annual FHA insurance rate was still making mortgages unaffordable.

With mortgage rates below 4%, dropping the FHA annual premium will make it more affordable to buy, and high rents will encourage those who can to take advantage of this:
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2015/HUDNo_15-001

[on point]

3. Housing prices need to fall to match wages. Anything else is artificial bubble

Since wages have been flat for decades, house prices should be too. Otherwise new bubbles with different means of artificial inflation, sure to bust