How about some uplifting and festive news in housing in time for the holidays? No, the news out there isn’t all good, but there are a lot of indicators to be thankful for.
“Sales of existing U.S. homes jumped 10% in October to the highest level since February 2007 as Americans rushed to take advantage of a tax credit, cheaper properties and lower mortgage rates,” according to a Bloomberg story covering the National Association of Realtors report issued on Monday. However, the median sales price fell 7.1% from October 2008.
Aside from the NAR report, a slew of housing news is due out this Thanksgiving week. Also due out this week is the Case Shiller Home Price Index of 20 metropolitan areas for September, and the national report for the entire third quarter, according to a report by the Taipan Publishing Group. “Wall Street economists are calling for the 20-city report to drop 9.1%, and the national report to show a negative 11%.”
The week concludes with “the October New Home Sales report, scheduled to be released on Wednesday at 10 a.m., EST,” the report continues. “Consensus is calling for a slight increase to 405,000 units, from 402,000 in September. With volumes expected to be light, and a potpourri of housing data on tap, this week should prove to be excessively volatile for the U.S. equity markets.”
A story today in the Los Angeles Times on the Case Shiller index notes that “home prices in 20 U.S. cities ticked up modestly in September, marking the fifth consecutive month of improvement.” The Standard & Poor’s/Case-Shiller index rose 0.3% from October on a seasonally adjusted basis, after a rise of 1.1% rise in August. The index fell 9.4% from September 2008, according to the story.
In the report Long Beach gets lumped in with the area known as the Los Angeles-Long Beach-Glendale Metropolitan Division. The report shows home prices increased 0.7% above their September levels for the division.
It’s beginning to feel a lot like Christmas—even in regions known for their arid climes.
Abu Dhabi is seeing “a steady flow” of owners and investors entering, or re-entering, into the United Arab Emirate’s real estate market, according to a report by The Al Bawaba Group, a Middle East real estate information service.
“According to research reports on the emirate’s property sector, a 15-52% correction of property prices in Abu Dhabi after almost two years of rapid increase has forced out short-term speculators,” the report states. “The speculators who had driven the market to its euphoric heights have largely been flushed out, while inflated prices are touching realistic levels. This is a confidence booster for both investors and local buyers.”
Economist John Hines, who is taking a longer, slightly more pessimistic, view than some on housing recovery, writes this week for housingpredictor.com that “if Congress makes the tough decisions it needs to make we could see a bottom by the third quarter of 2010.”
In his report, Hines quotes real estate mogul Donald Trump as saying: “Bankers aren’t doing their jobs.” And well-known real estate analyst Brian Lawson tells Hines: “Congress is sitting on its hands. Without further government intervention we’re screwed.”
“For all of its looks and appearances that the housing market is making a rebound with improving home sales, the rise in sales is an orchestration by the government to make markets look good to the public,” Hines continues. “A longer and complete recovery can not be choreographed by government intervention but must be developed through strategic planning and the implementation of laws on mortgage lending to protect consumers interests first.”
Party on dudes
USA Today is reporting that one new trend that has arisen from the ashes of the real estate bust is the emergence of (house) party animals. Police around the nation are dealing with people taking over foreclosed houses and throwing illegal parties.
The story offers anecdotes from around the nation, including an instance in San Diego County, where some young people have been taking over foreclosed houses for late-night rave parties. Detective Jeff Lauhon of the San Diego County Sheriff’s Office says the culprits are often well-organized: “A young couple would get a Realtor to give them a tour of a foreclosed house—usually in a rural area on a large property,” the story states. “The woman would distract the Realtor while the man surreptitiously left a window open or door ajar. They would then return and invite others for parties that lasted until the wee hours.”
Better still, the folks hosting the party assumed the fun-filled mantle of “party crew,” and the practice evidently has turned into a business venture. “They were charging admission, to cover the cost of alcohol and to make a good profit. It’s just another example of being an entrepreneur. They just chose to do it in a way that’s not lawful,” Lauhon told USA Today. About a half-dozen people were arrested on charges including grand theft, burglary and vandalism, according to the story.
Call me soft on crime, but I’d like to see those turkeys get bailed out in time for stuffing.