Pending Sales of Existing Homes in U.S. Drop by Most in a Year

[Purveyor]

Source: Bloomberg

(Bloomberg) -- Contracts to purchase previously owned U.S. homes unexpectedly fell in December by the most in a year, a sign the industry’s recovery remains uneven.

The index of pending sales dropped 3.7 percent after a 0.6 percent gain the prior month that was smaller than initially estimated, figures from the National Association of Realtors showed Thursday in Washington. The median forecast of 42 economists surveyed by Bloomberg called a 0.5 percent increase.

Fewer available properties, higher prices and still-tight credit are hurdles for some customers as first-time buyers remain reluctant to enter the market. At the same time, employment gains and near record-low mortgage rates will help to underpin demand, one reason builders such as Lennar Corp. expect the industry’s rebound will be sustained.

“Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth,” Lawrence Yun, the NAR’s chief economist, said in a statement. “More jobs, increasing consumer confidence, less expensive mortgage insurance and new low down-payment programs coming into the marketplace will likely lead to more demand from first-time buyers.”

Read more: http://www.bloomberg.com/news/articles/2015-01-29/pending-sales-of-existing-homes-in-u-s-drop-by-most-in-a-year

[PasadenaTrudy]

1. I always like to post

links to the outrageous home prices in my zip code. This house is so cute but tiny and $$$!

https://www.redfin.com/CA/South-Pasadena/1800-Alhambra-Rd-91030/home/7008058

[MADem]

4. That's so heart-stoppingly EXPENSIVE!!!!

I guess it's all down to location, location, location!!!!

Look at the bargains you can find far up in the northeast corner of Maine...this one goes for about one sixth of the cost of that sample you provided!!

&list=PLD2137300DE4ED4BA&index=14

[PasadenaTrudy]

8. Maine=cold weather, lol!

[MADem]

9. Makes Mass. look balmy on some occasions!

There have been years when I've had to go up north to see any snow at all!

Way up north, though, the economy isn't so hot--no jobs, very rural--it's a tough row to hoe for a lot of people. Nice people, though--very kind in a no-nonsense sort of way. Once you make a friend, they're a good friend, I've found.

It's not too culturally or ethnically diverse, though--if you aren't white or Native American (large tribe up that way), you're noticed (not in a mean way, just a curious way). They have Very Good Food, too--plain "American" food, of the sort you would see Grandma making in 1940's era movies--roasts, potatoes (of course) and PIES up the yin-yan....all the stuff that makes me weak at the knees!

If they ever got some light industry up that way, with enough jobs to support the population and then a few, the place would be a paradise. The air is clean, you don't get the pollution like in cities, and you can hear yourself think. Whenever I go up that way I have to adjust my senses to NOT hearing the constant murmur of traffic noise.

I lived in Monterey CA for awhile in a two bedroom postage stamp of a house--it was all I needed, really; the weather was so nice we spent most of our time outdoors!!! I guess it's the same situation in Pasadena~!

[PasadenaTrudy]

10. Yep, always warm

or hot these days. The magnolia trees are blooming already and I'm wearing shorts!

[MADem]

11. I spent about four hours today shoveling snow that included drifts that were pushing four feet.

There will be more tomorrow!

You can imagine that I am envious of your "shorts" lifestyle right about now!

[HockeyMom]

2. December is a very bad month to move

Been there, done that twice. Oh, never again, what with the bad weather and holidays.

[MADem]

5. I moved a time or two in winter, too--you're right, it's a pain in the behind. nt

[staggerleem]

7. Exactly what I was going to point out ...

Who wants to move in December? Moving in NICE weather is traumatic enough.

[DallasNE]

3. Some Parts Of The Country Were Hit By Some Nasty Weather In December

So that has to be factored in as well. Plus, how does that compare to December 2013? "Most in a year" sounds like last December was also weak.

[Yo_Mama]

6. Everybody's waiting for the FHA change. These will come back up quickly

once the mortgage premiums drop. It makes no sense to lock in a mortgage until it does if you need to buy a home with a low downpayment (as most first-time buyers must these days).

It takes effect January 26th:

There will be the following reduction in premiums in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following:

On terms > 15 years and loan amounts <=$625,500 - If the loan to value is <= 95%, the new Annual Premium is reduced from 130 basis points (bps) to 80 basis points (bps). If the loan to value is >95%, the new Annual Premium is reduced from 135 basis points (bps) to 85 basis points (bps).
On terms > 15 years and loan amounts >$625,500 - If the loan to value is <= 95%, the new Annual Premium is reduced from 150 basis points (bps) to 100 basis points (bps). If the loan to value is >95%, the new Annual Premium is reduced from 155 basis points (bps) to 105 basis points (bps).