News Watch: October 2nd, 2007
The National Association of Realtors released their report today stating, seasonally adjusted index of pending sales for existing homes fell 6.5 percent in August from July and 21.5 percent from a year ago. The data suggest sales of existing homes will likely keep declining in the coming months, at least on a national perspective.
Lawrence Yun, NAR senior economist, said the mortgage market impact is quantifiable. “Fewer contracts were being written because of mortgage availability issues, and a separate internal survey of our members shows more than 10 percent of sales contracts fell through at the last moment in August, primarily the result of canceled loan commitments,” he said. “The volume of activity we’re seeing today is below sustainable market fundamentals because some creditworthy people are trying to buy homes but can’t because of the credit crunch.
This news sucks for people that are stuck with poorly leveraged “investment properties” and people that bought their personal residences as personal piggy banks, but for those that purchased their home because they like their neighborhood, like their jobs and like their communities then such problems are not of chief concern. When they are ready to relocate 5, 7 or 10 years from today, no one has a clue what the market will look like.
News to Skim:
- Cute, smart, sexy and no place to stay the story of Duke sororities and the lost housing.
- Interest rates to fall to 3.75% by next year, from your mouth to God’s ears.
- Alexander Village at Brier Creek in goes for $16.8 million.
- 8 lessons to take away from playing Monopoly.
- Multi-million dollar “green” houses.
- Why NC will be recession proof.
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