Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  Existing home sales fell 0.9% in February to an annual rate of 4.59 million units
Posted Under: Data Watch • Home Sales • Housing

 
Implications: The housing sales market is slowly but surely mending. Although existing home sales fell 0.9% in February they are still up 8.8 percent from a year ago and near the highest level since November 2009.  The inventory of existing homes rose in February as more people put homes on the market, probably in large part due to the unusually warm weather, starting the spring selling season earlier than normal. But, even with this increase, inventories are still down 19.3% versus last year.   It still remains tough to buy a home. The National Association of Realtors said cancelled contracts to buy existing homes were at 31% in February, which is three times the normal level. These figures suggest that, despite record low mortgage rates, home buyers still face very tight credit conditions. Tight credit conditions would also explain why all-cash transactions accounted for 33 percent of purchases in February versus a traditional share of about 10 percent.  Those with cash are able to take advantage of home prices that are extremely low relative to fundamentals (such as rents and replacement costs); for them, it's a great time to buy.  With credit conditions remaining tight, we don't expect a huge increase in home sales any time soon, but the housing market is on the mend.

Click here for a printable version.
Posted on Wednesday, March 21, 2012 @ 12:56 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2019 All rights reserved.