>From Slate.com's Big Money blog, a post entitled "Spring Fools: Think the housing slump is over? Think again" by Mark Gimein:
...If you have been following the news from the realty and mortgage trade, you might think that it's time to pop the Champagne corks and celebrate the end of the housing crisis. The National Association of Realtors points in its latest report to "stabilizing prices," "steadying home prices," and "consistent price gains" in the market--a veritable potpourri of calming language. "We are likely seeing the beginning of the end of the unprecedented wave of delinquencies and foreclosures," declares the chief economist of the Mortgage Bankers Association.... The dirty secret of the housing recovery, though, is that in the worst hit markets--Florida, California, Nevada, Arizona, and other places where the foreclosure boom is concentrated--there's one important number that hasn't gotten better. That's the percent of people who can't pay their mortgages. Believe it or not, that number is rising faster than ever.... In the housing price run-up, lenders bet that prices would climb up forever. Now they hope, with similarly optimistic illogic, that prices can stabilize even as the buildup of busted mortgages continues. The first time, the lenders fooled us, and shame on them. This time? Remember the old adage: Fool me once, shame on you; fool me twice, shame on me. The mortgage bankers and Realtors might say recovery is right around the corner, but shame on you if you believe that this time. Read the whole thing: http://www.thebigmoney.com/articles/money-trail/2010/04/02/spring-fools?page=full http://tinyurl.com/ybf4nfz --- In [email protected], "do.rflex" <do.rf...@...> wrote: > > WASHINGTON The number of buyers who agreed to purchase previously > occupied homes rose sharply in February, far exceeding expectations, in a > sign that the housing market may be coming back from the winter doldrums. > > The National Association of Realtors said Monday its seasonally adjusted > index of sales agreements rose 8.2 percent from January to a February reading > of 97.6. January's reading was revised slightly downward to 90.2. > > The report "may signal the early stages of a second surge of home sales this > spring," said Lawrence Yun, the trade group's chief economist. > > Economists surveyed by Thomson Reuters had expected the index would fall > slightly to 90.3. The index is considered a barometer for future sales > activity because there is typically a one- to two- month lag between a signed > sales contract and a completed deal. > > A reading of 100 is equal to the level of sales activity in 2001, when > the index started. > > Home sales had been sluggish during the winter, partly because shoppers felt > less rushed after lawmakers extended the deadline to qualify a tax credit. > First-time buyers can get a tax break of up to $8,000 if they sign a contract > by April 30. Lawmakers also added credit of $6,500 for existing homeowners > who move. > > The biggest month-to-month increase was in the Midwest, where pending > sales rose by nearly 22 percent. Sales posted gains of 9 percent gains > in the South and Northeast, but fell nearly 5 percent in the West. > > ~ Associated Press: > http://www.google.com/hostednews/ap/article/ALeqM5jljsJcu7uX4H65Rj0zDRmPQvMEQAD9ESUU9G0 >
