The news hits this morning that pending home sales declined, and the news can be spun in either direction depending on one's outlook, disposition, or financial interests.
- National Bubble says "More bad news for the real estate market." I suppose site-hits would decline on that website if they reported good housing news.
- The National Association of Realtors (NAR) says "Existing-home sales to stablize before upturn in second half of 2008." Well, I wonder what their vested interest is? Have you heard any real estate agent not say that "the bottom is in!" all along the way?
- Urbandigs notes the NAR positive spin, too.
- Bearmaster (who writes at Beartopia) blogs at Los Angeles South Bay Beach Cities Housing Bubble blog (phew!), "Given that sales have almost no place to go but up, I believe that some fish will take the bait from the government stimulus package and go shopping for falling knives."
A forecasting gauge of previously owned homes fell in February after rising in January.
The National Association of Realtors' index for pending sales of previously owned homes fell 1.9% to 84.6 in February from January, the industry group said Tuesday. Private analysts projected pending sales would drop by 1.1%.
NAR's chief economist, Lawrence Yun, said existing home sales could start to show a sustained increase within a few months. "We're looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets," Mr. Yun said. "The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met."
My thoughts... Lots of PS (pending sales) in my neighborhood according to the local real estate site. Are they buying "falling knives" or buying a home to live in? I think the latter. And as long as they can keep their jobs and make monthly payments, I believe this is the sort of activity that will eventually work off that 10-month inventory of homes on the market. Knock on wood...