New home sales up 11% in June, the highest in 9 years.

[Hercules10]

Could be a bargain hunters spike with rates so low and prices deflated.

I'll be happy when the employment numbers start showing recovery since those are usually the last ones to show impact.

 

[NotUrsula]

I personally wish that lawmakers around the country would take the step of imposing moratoriums on new developer building permits in areas where foreclosure rates are exceeding 1 in 1000. Vacant properties are blighting neighborhoods all over the country -- we do NOT need to be building more homes in areas where so many existing homes are standing empty.

(I'd be OK with exempting single permits for homes to be occupied by the person who already owns the land; I'm talking about temporarily stopping the speculative development of previously non-residential land.)

 

[Sanchez]

I personally wish that lawmakers around the country would take the step of imposing moratoriums on new developer building permits in areas where foreclosure rates are exceeding 1 in 1000. Vacant properties are blighting neighborhoods all over the country -- we do NOT need to be building more homes in areas where so many existing homes are standing empty.

(I'd be OK with exempting single permits for homes to be occupied by the person who already owns the land; I'm talking about temporarily stopping the speculative development of previously non-residential land.)

It would be very difficult to permit one and not the other. In any event, I doubt that there are many builders with the ability to put up specs given the market conditions. Local governments have in the past restricted the number of annual permits, but I do not know whether they exempted existing lot owners. What if the builder already owned the lot?

 

[disney1990]

Even though you or I may not think so, this is usually a great indicator of the economy moving forward.

What do you think?

Actually, I do think we are starting the rebound. I've been saying that for about 6 weeks.

EDIT: Here is PART of an article I found on Fox News:

WASHINGTON -- New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.

While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall. And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.

"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."

New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.

Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.

The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.

In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.

This means that new home builders have sold 11% more houses. Now, those houses may never ever actually transfer hands to the new buyer. These are only SALES. Down the road a lot of these houses will ultimately be back on the market -- sorry to say. But, it's definitely a start; people are at least trying to buy houses again.

In addition the sale of "existing" houses was also up this month.

I personally wish that lawmakers around the country would take the step of imposing moratoriums on new developer building permits in areas where foreclosure rates are exceeding 1 in 1000. Vacant properties are blighting neighborhoods all over the country -- we do NOT need to be building more homes in areas where so many existing homes are standing empty.

(I'd be OK with exempting single permits for homes to be occupied by the person who already owns the land; I'm talking about temporarily stopping the speculative development of previously non-residential land.)

This will never happen because it would only put additional people out of work -- the construction workers, the office workers of those construction companies, the sales people, not to mention, the vendors that sell everything that goes into the houses.

The problem is that people want a "new house" that is theirs. They go to a development and there are say 10 houses that are totally built, but the sales fell through. But, they don't want to buy one of those houses. They want to be able to pick out their own carpet colors, their own countertops, the tiles that goes into the bathrooms and the kitchens. So, the builder builds yet another house for them -- and if that sale falls through -- oh no, we start it all over again.

 

[P.I. Squirrel]

I just love how the media twists and alters data to make a story appear better than it actually is. Here is CNN's version of the story. First, the headline:

New home sales: 'Really good news'
Sales of newly constructed single family homes rose 11% over May, but median price fell 3%.

Now, deeper in the story is the news they try to hide:

However, sales are still 21% below the levels of a year ago, when new homes sold in June at an annualized rate of 488,000, according to the report released by the U.S. Department of Housing and Urban Development. Four years ago, during the height of the housing boom, the sales rate for June was 1,374,000, nearly three-and-a-half times higher than last month

If I take $100 from you, then give you $5 back this month, but $10 back next month, you've still lost $85. But, the media would report it as "P.I. Squirrel increases payment by 100%".

In other words, two months don't make a recovery. I think the media is jumping the gun a bit on this one.

 

[IDoDis]

Funny this thread was started because I noticed that homes in my neighborhood are selling rather quickly! One home two houses down from us went on the market in mid-April. When we got back from our Disney vacation in early June, we noticed a "sold" sign was up.

Two houses on the same block (one block up from us), both went on the market in mid June. Last week one of the houses had a sold sign in front. As I drove by the other house, their sign said "sale pending" -- both on the same day and only on the market for a little over a month.

I imagine the prices are not what I'd want to sell for, but hey -- at least they are starting to sell! Last winter I'd see signs go up and stay for a few months and then the owner would take the sign down, and take the house off of the market.

 

[aprilgail2]

I just saw today that 4 homes have gone up on my mom's street, which is just 2 streets away from me. They apparently went up in the last 2 weeks. Two of them are already sold.

.

Funny this thread was started because I noticed that homes in my neighborhood are selling rather quickly! One home two houses down from us went on the market in mid-April. When we got back from our Disney vacation in early June, we noticed a "sold" sign was up.

Two houses on the same block (one block up from us), both went on the market in mid June. Last week one of the houses had a sold sign in front. As I drove by the other house, their sign said "sale pending" -- both on the same day and only on the market for a little over a month.

I imagine the prices are not what I'd want to sell for, but hey -- at least they are starting to sell! Last winter I'd see signs go up and stay for a few months and then the owner would take the sign down, and take the house off of the market.

Here too- my friend sold her house in less than 2 weeks last month and a house on my block within a month. I think it just depend on the area of the country, many are hit worse than others. I know where I work they are hiring again- just saw the notice with 50 new jobs on it.