February Existing Home Sales
February Existing Home Sales down third month in a row falling 0.6% of 5.02 million, the lowest in eight months.
“Some closings were simply postponed by winter storms, but buyers couldn’t get out to look at homes in some areas and that should negatively impact near-term contract activity,” Lawrence Yun, National Association of Realtors chief economist.
“The key test for a durable recovery comes in the next few months as the tax credit deadline approaches,” Yun said. “If we see a surge in home buying comparable to last fall in the months leading up to the original tax credit deadline, then enough inventory should be absorbed to ensure a broad home price stabilization.”
The deadline for first-time homebuyer tax credit is on April 30, 2010 for $8000. “Most buyers spend several months looking at a dozen homes before they make a contract offer, but less than six weeks are left before the April 30 contract deadline. If you’re sure about the kind of home you want and the neighborhood where you’d like to live, you need to begin working with a Realtor® now to help you find what you want, negotiate on your behalf and ensure that you meet the necessary deadlines, including loan qualification,” NAR President Vicki Golder said.
Existing home sales provide the demand for housing of previously constructed homes, condos and co-ops with closed sales during the month. Existing home sales provide a large share of the housing industry than tomorrow’s February New Home Sales.
Tomorrow February New Home Sales
Last month new home sales were difficult due to the winter snowstorms and had a lower-than-expected annual rate of 309k versus 360k consensus in January. New home sales fell 7.6% in December and down 22.9% in 2009. New home sales provide demand for housing of newly constructed homes with a committed sale during the month. Equities to watch on these numbers include: Home builders, mortgage lenders, and home furnishings companies.
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