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The last week of every month is always the most data-rich, with new and existing home sale reports, price reports from S&P Case Shiller and the FHFA government price index. This month will be particularly interesting, since the jambalaya will include the quarterly delinquency survey from the Mortgage Bankers Association this Thursday.

The street is predicting existing home sales to increase, based largely on the sales surge of distressed properties. No question, the bottom feeders are back in the game, as are first time home buyers.

But these sales are not the type of sales necessary for meaningful recovery in housing. Don’t get me wrong, we need to unload the foreclosure inventory, but without real “organic” sales, that is move-up home buyers and sellers, there is no way to put a bottom on home prices.

I know there is a common perception that foreclosures and distressed sales are really only happening in the big boom-to-bust states, i.e. California, Florida, Nevada and Arizona. California makes up roughly 10 percent of the U.S. population and very roughly ten percent of the nation’s total housing units. complete story

Source: CNBC.com - Diana Olick

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Posted by Orlando Realty Experts on May 26th, 2009 11:09 PMPost a Comment (0)

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