Earlier today, the National Association of Realtors (NAR) announced , ....
December Existing Home Sales Rise Unexpectedly- The NAR says sales of existing homes rose 6.5 percent from November to December, closing out the worst year for the U.S. real estate market in more than a decade.
The National Association of Realtors said Monday that sales of existing homes rose to an annual rate of 4.74 million in December, from a downwardly revised pace of 4.45 million in November.
The question I ask , "Is this Good News"
I , personally, am quite concerned. I know, I know, I am crazy, right?? I mean more home buyers is good news. We need the multitude of short sales, bank owned homes and resale homes and the general over-supply of real estate reduced before we can hit a bootom, build a base and move in the direction of a recovery.
HOWEVER, we also need a sopt, a firm stop in declining home prices. Our collective (american homeonwer) net worth is tied up in our homes. The lending and credit markets willingness to lend money is tied to the flattening of home prices.
If we cannot get a stop in this accelarating drop in home prices. We will Never (I am slightly exaggerating) see the end to the economic recession.
Personally, I would have rather seen the expected report in existing home sales. Not the unexpected percentage rise.The huge drop in prices (think California - 38%!!! in 2008 alone!!) causing this is not good news!!
Let me know what you think.
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