February home sales rise (5.1% over Jan) as prices sink

[JohnWxy]

http://news.yahoo.com/s/ap/20090323/ap_on_bi_ge/home_sales

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January.


http://www.usatoday.com/printedition/money/20090324/homesales24_st.art.htm


Sales rose in February to a seasonally adjusted annual rate of 4.72 million units from a pace of 4.49 million units in January, but they are still 4.6% below the 4.95 million-unit level in February 2008.

"It was nice to see," says Joel Naroff, with Naroff Economic Advisors. "February and December were similar (in showing an increase). If there is another similar increase in March, I will think prices may be stabilizing. Sales have pretty much hit bottom."

[theoldman]

1. The price of houses has probably bottomed out.

If you want or need to buy a home, now is as good a time as any. In North Texas there was never a big drop in price to begin with.

[JohnWxy]

2. The places with the biggest drops were where the prices were inflated the most. Often

with the help of the use of fraudulent loan practices by out of control predatory lenders.

[edhopper]

3. That depends on where

Here in the Northeast and especially in the New York are they still have a long way to go down. Maybe 50% or more.

[notesdev]

5. Unlikely

Housing prices still have a way to go to reach the historical affordability norm.

[LeftHandPath]

4. "The National Association of Realtors said Monday..."

That should be all you need to read. These guys have botched and twisted every stat produced over the last 2 years. A month to month comparison at the start of the spring selling season means ZERO.

The question is: Do you think homes are currently at fair value considering the economy and excessive building over the last 8 years?

My answer: Hell no! This crisis is just getting started. We havent even gotten to commercial real estate yet. Let alone Credit Card and student loan defaults. We're in the third inning of the game.