Economic Roundup: June 28, 2010

In the News https://www.wjbradley.com/email/portal-email/images/econ-rule.gif

Still buoyed by the federal tax credit, sales of existing homes in May continued to perform at a healthy pace, but were slightly down from April, the National Association of REALTORS® reported last week. Performance was a mixed bag, depending on region, with the West and South enjoying gains while the Northeast and Midwest showed steady performance.
 
Overall, sales of existing single-family homes, townhomes, condominiums and co-ops in May were at a seasonally adjusted annual rate of 5.66 million units, which was down 2.2 percent from April's upwardly revised surge of 5.79 million. In comparison to last year, May's closings were 19.2 percent higher than May 2009's sales of 4.75 million units.
 
NAR's statistics for June's existing home sales, once tallied, could continue to benefit from the lingering effects of the tax credit, according to Lawrence Yun, NAR's chief economist.
 
"We are witnessing the ongoing effects of the home buyer tax credit, which we'll also see in June real estate closings," Yun said last week. "However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales."
 
On the opposite side of the spectrum, sales of new single-family homes for May plunged by a precipitous 32.7 percent, ringing in 300,000 units, compared to April's revised rate of 446,000 units, according to data released last week by the Census Bureau. May's sales were even 18.3 percent below May 2009's sales of 367,000.
 
All in all, May was the slowest month for new home sales in 47 years. The news completely flummoxed real estate analysts, who were expecting to see a drop for May due to the end of the new home buyer tax credit, but nowhere near a third.
 
The drop in sales volume for May was accompanied by an improvement in price performance. For existing home sales, the national median price was $179,600, slightly up from April's median of $173,100. Similarly, the median sales price for new houses sold in May was $200,900, compared to April's median of $198,400.
 
This week's financial news will include stories on personal income and spending (June 28) from the Bureau of Economic Analysis; consumer confidence (July 1) from the Conference Board; car and truck sales (July1) from the auto manufacturers; payrolls and the average workweek (July 2) from the Bureau of Labor Statistics; and construction spending (July 1) and factory orders (July 2) from the Census Bureau.
 

 

Equal Housing Lender. 2010 W.J. Bradley Mortgage Capital Corp., 201 Columbine Street Suite 300, Denver, CO 80206. Phone #303-825-5670. Trade/service marks are the property of W.J. Bradley Mortgage Capital Corp. This is not a commitment to lend. Restrictions apply. All rights reserved. Some products may not be available in all states.

AZ License # BK-0903998; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act RML# 4131002; To check the license status of your CO Mortgage Broker, visit www.dora.state.co.us/real-estate/index.htm; Florida Mortgage Lender license #ML.100000098; Georgia Residential Mortgage Licensee, License No. 20233; ID Mortgage Broker License No. MBL-2803; IL Residential Mortgage Licensee – License #MB.6760738, 201 Columbine Street, Suite 300, Denver, CO 80206; MI First Mortgage License No. FL0011392; Mississippi Mortgage Lender License #4298/2009; MN Residential Mortgage Originator License No. 20447094; MO Residential Mortgage Loan Broker License #10-1841, 1065 Executive Parkway, Suite 205, Creve Coeur, MO 63141; NV Mortgage Banker License No. 2061; NV Mortgage Broker License No. 504; NM Mortgage Loan Company and Loan Broker Act Reg. No. 01856; OK Mortgage Broker- License No. MB001365; OR Mortgage Lender License No. ML-776; TN Mortgage Company Registration Certificate No. 3629; TX Mortgage Banker Reg. No. 74182; UT Mortgage Lender Company License No. 5495659-MLCO; Vermont Broker License #0995MB; Vermont Lender License #6141; WA Consumer Loan License No. 520-CL-42624; Wisconsin Mortgage Banker License No. 699991.

 

 

Comments