Expect No Recovery for Homes for sale in Everett
If you are expecting a recovery of the market for homes for sale in Everett don’t hold your breath. The MSM (main stream media) keeps on drinking the Kool aid but I’m not. A panel of economists at the International Builders’ Show in Las Vegas agreed broadly on the outlook for the housing market and economy. Both, they said, had turned a corner, but there are slim prospects for a swift rebound. As I have stated many times before there will be no recovery without jobs.
After the news that home sales UNEXPECTEDLY dropped like a stone in December I don’t know how an economist like Davis Crowe of the National Association of Home Builders (NAHB) can say, “It won’t be a strong recovery, but it will be a recovery,” Granted he has to remain positive because of his position but let’s get real. There is that word unexpectedly. I would love a job like his. It’s like the weatherman you never have to be right.
Anyway Mr. Crowe had that to say after the December home sales were reported. Sales of new homes fell unexpectedly in December, capping the industry’s worst year on record and fueling concern that the housing market turnaround could falter.
Last month’s results were the weakest since March and were only 4 percent above the bottom last January. The data showed the housing recovery remains limp despite newly expanded tax incentives to spur sales. Many in the industry, however, expect sales to pick up as the April 30 deadline for the tax credit nears.
Mr. Crowe has this forecast for homes for sale in Everett. He claims sales of new and previously occupied homes to weaken after tax credits for homebuyers expire in April. But 2010 sales of new homes will be up by more than one-third, he said, and almost 7 percent higher for resale’s. As for prices on homes for sale in Everett he says home prices should remain stable going forward, though some cities may still see some slight declines in the coming months. Personally I don’t see any recovery without JOBS.
Last month cash out refinancing was almost nonexistent. Even with mortgage rates at historic lows no one is taking advantage of them. I see 2 reasons for that. One reason is tight credit rules making refinancing so difficult as to turn off many borrowers. I had a borrower with a 718 credit score but we were unable to refinance his home. This is a loan that makes great economic sense but will not happen because of unreasonably tight rules. Another reason is plain fear, the uncertainty of the future and no JOBS.
NAHB has a consumer confidence index and it fell to 15. The index reflects a survey of 504 residential developers nationwide. Index readings below 50 indicate negative sentiment about the market.
I expect the market for homes for sale in Everett to remain flat for the foreseeable future.
Jim Johnson and comments are always welcome.
Everett Mortgage on Line.
Good posting. Will you please write much more about this topic.