New home sales hit record low in January

[Craftsman]

Source: http://finance.yahoo.com/news/New-home-sales-hit-record-low-apf-2245141272.html?x=0&.v=1

WASHINGTON (AP) -- Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century. The big drop was a surprise to economists who had expected sales would rebound to an annual rate of 360,000 units.

The January decline will heighten fears about the fledgling recovery in housing. Economists were already worried that an improvement in sales in the second half of last year could falter as various government support programs are withdrawn.



Read more: http://finance.yahoo.com/news/New-home-sales-hit-record-low-apf-2245141272.html?x=0&.v=1

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Gangrene Shoots

[Renew Deal]

1. The weather has been pretty rough in large parts of the country

That probably has a role. Also, paying off credit cards after the holidays also has an affect.

[jschurchin]

2. To be honest Renew

I think it has more to do with having jobs and perfect credit. Without both, you have close to a zero chance of getting a mortgage.

[proudohioan]

3. I agree, jschurchin.

And why does this kind of stuff always come as a "big surprise" to forecasters?? In THIS economy??? Rhetorical question, really!

:shrug:

[WriteDown]

4. Which is probably how it should be...

And at least 10% down.

[Renew Deal]

5. I don't disagree

There's no question that there are issues with jobs and the economy. The consider confidence numbers prove that. My point is that it seems like there was a "perfect storm" situation in January.

[leftofcool]

6. Yes and No

Job, of course but our realtor just put a young couple in a home with a 580 credit score. They had to pay a bit higher in interest, 6% I think and their credit score was based on so unpaid medical bills but they got their house with a reasonable payment they could afford. Some lenders are assholes and some will really work with people who have a reasonable down payment and closing costs. 90% are jerks, ya just have to find one in that 10% category.

[TwixVoy]

7. New home sales drop 11 percent in January, new low

Source: AP

ASHINGTON (AP) -- Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century. The big drop was a surprise to economists who were expecting a 5 percent increase over December's pace.

While winter storms were partly to blame, home sales have fallen for three straight months despite sweeping government support. Economists were already worried that an improvement in sales in the second half of last year could falter as various government support programs are withdrawn.

"There is no doubt that January and February are going to be messy months for housing, given the severe weather conditions, but that doesn't take away from the fact that the housing sector has taken another big step back, even with the government aid," Jennifer Lee, a senior economist at BMO Capital Markets, said in a research note.

Read more: http://finance.yahoo.com/news/New-home-sales-drop-11-apf-2245141272.html?x=0&sec=topStories&pos=7&asset=&ccode=

[DontTreadOnMe]

8. Surprise!

They "expected" a 5% increase over December... oh, we'll make up for it next month.

[Oregone]

9. Turning a corner

[BootinUp]

10. Who cares?

obviously there is going to be an adjustment in new home sales following the crazy period we have just exited. This is no surprise at all.

[KILL THE WISE ONE]

11. why buy new when i can get foreclosed for half the price

dah