posted on May 26, 2004 10:02:55 AM new
WASHINGTON (Reuters) - Sales of new U.S. homes sagged well below expectations in April to post their biggest monthly drop in more than ten years as rising mortgage interest rates cooled the busy housing market, a government report showed on Wednesday.
Sales of new homes tumbled 11.8 percent to a seasonally adjusted annual rate of 1.093 million units from an upwardly revised record high of 1.239 million in March, the Commerce Department said.
Analysts polled by Reuters were expecting sales to ease to a 1.200 million unit pace.
April's rate was the lowest level of new home sales since November in what is normally the peak season for real estate sales. The decline -- the largest monthly drop since January 1994 -- could signal the end of a housing boom fueled by the lowest mortgage interest rates since the early 1960s.
Mortgage applications fell last week for the third straight week, the Mortgage Bankers Association reported earlier. At the same time, home resales rose to their second highest level on record last month as undecided home seekers acted before rates rise even higher, data released on Tuesday by the National Association of Realtors showed.
Mortgage interest rates have climbed in recent weeks as evidence of economic growth and an improving job market has led observers to anticipate the Federal Reserve will soon push up short-term interest rates from their lowest level since 1958.
New home sales fell by 22 percent in the South, the region with the greatest volume. Sales fell by 9.4 percent in the West and by 2.5 percent in the Northeast, but rose 10.8 percent in the Midwest.
The number of new homes available for sale at the end of the month was at its highest level since January 1980.
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If it's really "common" sense, why do so few people actually have it?
posted on May 26, 2004 06:13:22 PM new
dont blame rising interest rate,the builders are running out of buyers!!
here we have lots for 500 more homes but the last 200 completed were targeted at low income families which did not realise swapping house for apt is more than swapping rent for mortgage,there are tax,assoc fee,washer/dryer,water,sewage.lawn mower,fertiliser.
we have over 50 households which have not paid their assoc fee which was due on jan 5th.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on May 26, 2004 06:44:48 PM new
But why?... the economy's better, right? The President said so, I heard him my own self....
___________________________________
When a dog howls at the moon, we call it religion. When he barks at strangers, we call it patriotism. - Edward Abbey
posted on May 27, 2004 06:14:42 AM new
yes,the economy is better,it has been a long drought,now the producers are able to raise prices and they are passing the price increase to the consumers.
we just have to eat less,drive less and consume less.
ever wonder why there are so many overweight people in this country???????
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on May 27, 2004 06:48:16 AM new
There's still good news!!!
Sales of previously owned houses rose 2.5 percent in April, to a 6.64 million annual pace, the second highest on record, a report yesterday from the National Association of Realtors showed.
[On new homes]
Even with the April decline, sales so far this year are at an annual pace of 1.283 million houses, which would exceed last year's record.
In California, known for hot real estate markets, home prices registered the second-biggest increase in 26 years in April, the state Association of Realtors said. The median price of an existing single-family detached home in California rose 24.6 percent from a year earlier, to $453,590.
There was an increase in shipments of business equipment, which economists expect to help fuel the economy this quarter.
Manufacturers hired more workers last month than at any time in almost four years.
Economists at Bear Stearns said the value of nonmilitary capital-goods shipments excluding aircraft, a component in calculating the gross domestic product, was 15.8 percent higher at an annual pace than the first-quarter average.
The strength "suggests that business-equipment spending will likely post another double-digit gain in the second quarter," John Ryding, Bear Stearns' chief market economist in New York, said.
^^^ taken from the NYT
~~~~Assoc. Press
Other recent reports, including one released by the Federal Reserve this month, suggested that manufacturing activity was healthy in April.
Orders for communications equipment, computers, electrical equipment and appliances all posted solid gains.
NEW YORK (AP) - Stocks opened higher on Wall Street Thursday as investors welcomed fresh signs of strength in the economy, including a solid gross domestic product reading,
a decline in weekly jobless claims
and easing oil prices.
In the opening minutes of trading, the Dow Jones industrial average was up 67.85, or 0.7 percent, at 10,177.74.
Broader stock indicators were also higher. The Standard & Poor's 500 index was up 5.73, or 0.5, percent and the Nasdaq composite index was up 9.26, or 0.5, percent at 1,985.41.
The Russell 2000 index of smaller companies was up 1.72, or 0.3 percent, at 569.49.
Before the market opened, the Commerce Department reported that the economy, as measured by the GDP, grew at a 4.4 percent annual rate in the first quarter of this year.
The solid growth rate was slightly faster than the 4.2 percent pace first estimated a month ago as well as the 4.1 percent growth rate registered in the final quarter of 2003.
The reading was slightly less than analysts had forecast, but nonetheless represented a strong signal that the economic recovery was maintaining its forward momentum.
Separately, the Labor Department that new applications for unemployment benefits dropped last week by a seasonally adjusted 3,000 to 344,000.
Oil prices also eased, lifting another source of recent worry for investors.
posted on May 27, 2004 08:22:59 AM new
Linda - peoplle are buying pre-existing homes in California because they can not afford new homes. If new homes starts are down the unemployment rises as the supporting industries lay off workers.
Part of the reason the prices made the big jump is that the homes being sold are no longer 10 and 15 years old. The just did a big story here in San Diego on the number of people that are selling their 2 and three year old homes and leaving the state because they just cannot afford to live here anymore. I was just visiting a friend yesterday who lives in a development that is maybe five years old. Half the houses on his block were for sale.
Also, how many new housing starts do you think there will be in the south with a 20% drop in sales and what kind of damage will that do to the surrounding economies as more workers become unemployed and orders for material drop. A 20% drop in income is something that many companies simply won't be able to weather.
I would love to believe that the economy is picking up but every business owner I know in this area is struggling just as much now as they were a year ago.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
If it's really "common" sense, why do so few people actually have it?
posted on May 27, 2004 10:20:01 AM new
fenix - I said: "There's still good news!!![/i]
Which is a true statement. All the indicators I pointed are are good. That doesn't discount your concerns for the new housing market....it just states that there are areas where things are good.
We've had a strong two months. Now new home sale have back tracked. This has happened before in our economy...many times....and the world didn't end.
posted on May 27, 2004 10:40:29 AM new
fenix,
if the people in the new division are selling their homes,where can they go??
unless they have a job waiting for them in another state,they would still have to face the same problem-calif housing.
at least here in houston,they can just move back into an apt.
My brother lives in an one bedroom apt in oakland,ca for many years and pays 1k a month rent,thats cheap!!!
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on May 27, 2004 11:26:23 AM new
Stop - they didn't put the reasons they were selling on the signs in their yard. Is that something they do in Houston? Also, are you under the impression that there are no apartments here?
Considering that these homes are in the 700K range, they could just be downsizing, they could already have jobs in other towms, they could be self employed and it does not matter what state they live in....
I think you may have the right idea though- I think that people should be required to include the reason for sale and owners future plans right there on the sign.
BTW - Sas Diego has high unemployment, low wages and one of the highest costs of living in California. If I had to depend on the job market here to survive I would have left a long time ago whether I had another job to go to or not.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
If it's really "common" sense, why do so few people actually have it?
posted on May 27, 2004 11:47:45 AM new
I also think some are taking their CA [house] money and running.
I know of three couples who are looking to sell and move out of CA. All have jobs with no threat of unemployment...they just want out. Too many people...to crowded...etc.
They can cash out...move out of state and pay cash for a home - no mortage, pocket the rest and enjoy a slower pace of life. Matter of fact, this week I have some old friends from Southern CA coming to visit who are hoping to do exactly that.
posted on May 27, 2004 12:27:37 PM new
I know the complex I moved into when I first moved to SD had one bedrooms for $800. At this point, now that the ballpark has opened prices are spiking at about $1.25 a square foot but that will probably drop some starting around the beginning of the year. Investors are planning on downtown becoming "this place to be" thanks to the ballbark and Gaslamp District growth and there are 38 new buildings being either restructured (old SRO hotels being gutted and turned into luxury apartments) or built ground up. Nearly every one of them are combination retail/residential units.
Good thing I got rid of my car. The parking lot for our building is going to be one of those new buildings which leaves the closest monthly parking lot four blaocks away.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
If it's really "common" sense, why do so few people actually have it?
posted on May 27, 2004 04:22:27 PM new
Imagine having to pay for a place to park a car...what a horrible way to live.
___________________________________
When a dog howls at the moon, we call it religion. When he barks at strangers, we call it patriotism. - Edward Abbey
posted on May 27, 2004 06:18:32 PM new
some of us can only imagine the calif living,if money is not a problem ,why leave??
nice weather,fresh seafood,lots of fresh produce,nice chinatown ,nice people??
lots of things to do.
where i live,we just have a super kroger complex and we just eagerly wait for the stores in the complex to open-video rental,liquor,chinese food,nails,subway sandwich WHOOPEE!!!!!!!!!!
KROGER SUCKS!!!!!!
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on May 27, 2004 06:36:45 PM new
It's unhealthy to breathe the air in S. CA. SMOG!!! traffic you can barely move in day or night.
And central CA [San Jose] is getting almost as bad. If you don't live near the beach....or in the wonderful mountains of N. CA - you may as well live anywhere else.
posted on May 27, 2004 08:27:55 PM new
Stop - you watch too much TV - California is just another place. Sure the weather is nicer but the food costs the same, the traffic is worse and the attitudes are horrible. I've lived on the east coast, the midwest, LA and now SD and with the exception of weather they are all the same... kinda.... people are nicer in the midwest.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
If it's really "common" sense, why do so few people actually have it?
posted on May 27, 2004 09:05:03 PM new
Personally, I think California is a wonderful place. It's too bad the Californios who are moving here like lice off a dead hen don't realize it too, and stay home.
___________________________________
When a dog howls at the moon, we call it religion. When he barks at strangers, we call it patriotism. - Edward Abbey
posted on May 28, 2004 06:06:37 AM new
As Elizabeth Bishop suggested, staying at home is a good option.
"Is it lack of imagination that makes us come to imagined places, not just stay at home? Or could Pascal have been not entirely right about just sitting quietly in one's room?
Continent, city, country, society: the choice is never wide and never free. And here, or there . . . No. Should we have stayed at home, wherever that may be?"
Right now, the most affordable houses in our area are now $375,000 and people are buying them like hotcakes. It's not unusual to see a house sell in only one day for more than the asking price.
posted on May 28, 2004 06:18:28 AM new
fenix,
most of the movies i watch are americans in foreign land,the latest one is michael caine-an american in vietnam.or is it saigon??
most will agree with me california is a good place not just to visit,but to live,i lived in the midwest for many years and i dont need the weather,even scandinavians complained of the windchill factor.Have you ever tried walking with heavy socks and lined leather gloves and both your toes and fingers are numb??
There is no perfect place to live,it is a matter of personal preference ,lots of midwesterners would love to make the great escape to california,smog or no smog.
BTW-good face job on michael caine
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on May 28, 2004 07:37:16 AM new
Stop - cold toes and fingers? yep, every winter (Indiana). Much preferable to the sweltering heat of the summers - jmo.
nearthesea - where do you live? and what do you get for $250K? In other words what's your definition of basic home? I think my house is a little better than basic and I paid a lot less than 250k for it.
I've never understood how people survive economically in CA or NY. In my little town a $400,000 home is practically a mansion.
posted on May 28, 2004 07:43:14 AM new
In Maryland, $375,000 is the price of a very basic house...a three bedroom brick rambler with a basement on a quarter acre lot.
posted on May 28, 2004 07:54:18 AM new
i dont know how Californians afford to live in california??
until the dot.com boom,jobs in banking,retail,marketing dont pay that much,at least not enough to justify the high price of housing.
But in NYC ,it is a different story-east coast is packed with old money,not to mention wall street pays a good buck,many folks make 6 figures,some make 7 figures.
But then there are also people who dont make much-one of my neighbors in a co-op building,he and his wife raised 2 sons in a large one bedroom apt (they called it junior four ,which is a one bedroom with a dining alcove).The alcove is where the 2 sons sleep,at nite there is a curtain which closed off the alcove,and the sons lived there until 18-22.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on May 28, 2004 09:45:50 AM new
cherishedclutter, we live in a suburb of Seattle, where say a 'basic' house is the one most families would want is 3bd 2bath, and no large lots, a yard though, would run $250K or more
We paid a bit more than the houses where Helen is. Its kinda big house, double lot, and view.... it was Mikes 'dream' house. (I don't have those nightmares ) naaaa I like it, its just a little big, and too much yardwork.
You're just a rich republican, Nearthesea. That kind of house in my county would start at a mil. Some of the houses, for example that we refer to as cardboard houses - made out of engineered lumber - new, and poorly built are in that category.
