March Home Sales Report: You can dress it up, but…

by Alex Stenback on April 24, 2007

Pig_lipstick
The March existing home sales report hit the wires today, and Mike Larsen over at Interest Rate Roundup (another blog you should be reading) provides the best commentary we’ve seen today on it’s ugly data. 

In brief:

No amount of lipstick can make this pig of a home sales report look
pretty. Sales dropped sharply. Prices fell again. And inventories are
closing in on the 14-year high set in late 2006. No doubt, crummy weather had an impact on the figures. But sales were poor in all regions…That tells me a lot more is at work here – namely, that affordability
is still poor, that speculators have left the building, and that
tighter mortgage standards are starting to knock marginal buyers out of
the market.

We’ll add the obligatory "This is just a snaphsot, one report does not define the market, local areas don’t always correspond to national/regional figures, etc. etc." but no matter how you spin it, this lets more air out of the balloon the "real estate bottomed last August" crowd is clinging too.  We’ll unpack the local figs when we get our hands on them.
March Existing Home Sales – Ugh [interestrateroundup.blogspot]

{ 3 comments… read them below or add one }

Teresa Boardman April 28, 2007 at 5:46 am

But Alex there is an upside to this . . . ah maybe you can tell me what it is?

Martin April 28, 2007 at 9:51 pm

Then can you explain why there are so few decent properties for under 300K in the Twin Cities (or at least Saint Paul)?

Editor April 30, 2007 at 3:49 pm

Theresa – the upside, is that this sort of thing should help the industry right-size (agents and mortgage people leaving the business)

Martin – A quick check reveals roughly 1500 single family homes for sale in St. Paul proper UNDER 300k. Not that we are vouching for the quality of what 300k gets you these days, but there is plenty to look at anyway.

Good/excellent real estate under 300K (properly priced) is a very hot market right now, actually. The premium spots go quick.

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