Home sales … skyrocket?

From CNBC:

Home sales make record jump, proving how sensitive buyers are to mortgage rates

Sales of existing homes skyrocketed a whopping 11.8 percent in February compared with January, according to the National Association of Realtors. That is the largest monthly jump ever, with the exception of a change in mortgage policy in 2015 that temporarily skewed the data.

Realtors pointed squarely to dropping mortgage rates and home prices for the increase in demand.

“Consumers are very sensitive to mortgage rates, at least that’s what we are finding out. So as mortgage rate began to drop, there was evidently a strong pent-up demand,” said Lawrence Yun, chief economist for the Realtors.

At the start of last year, housing demand was robust and rates relatively low, with the average rate on the popular 30-year fixed right around 4 percent, according to Mortgage News Daily. That caused a frenzy in buying through the spring. But with supply remaining tight, prices overheated.

By summer, those prices were moving out of reach, especially as interest rates began rising. By November, the average rate on the 30-year fixed had spiked over 5 percent, and home sales plummeted.

Mortgage rates then began falling in December and moved decidedly lower in January to around 4.5 percent, causing the renewed interest in buyer demand. More consumers now believe it is a good time to buy a home and more believe the economy is improving, according to a sentiment survey by the Realtors in the first quarter of this year.


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19 Responses to Home sales … skyrocket?

  1. Chicago says:

    @riST

  2. The Great Pumpkin says:

    Brilliant strategy. Have to have an Apple device to play…

    “Apple is arriving late to the streaming video party and has been sparing no expense to make a fashionable entrance. It’s signed deals with A-listers like Oprah Winfrey, Steven Spielberg, Jennifer Aniston, and Reese Witherspoon, along with the people behind Sesame Street, to create original shows. And it’s reportedly dropping more than $1 billion on original video content this year.
    But what’s it going to do with all of it? It could give it all away for free.
    Apple may not concern itself with the subscription revenue competitors like Netflix have built their businesses around. The real value for Apple in amassing a content arsenal is to draw audiences to its “TV” app, BTIG Research analyst Rich Greenfield wrote in a blog post (login required) Sept. 4. The TV app, introduced in 2016, currently aggregates content from other video providers and allows people to locate shows and movies across apps. It could become**a larger hub for streaming video if Apple can entice viewers to spend more time within the app.
    “We believe all a consumer will need to do is already own or buy an Apple device (iPhone, iPad or Apple TV) to have free access to all of the content Apple’s video team is creating,” Greenfield wrote, adding he suspects the TV app will eventually hit other Apple devices like the Mac, as well. “Similar to Amazon Prime, the initial Apple content offering is just the beginning. Apple is hoping that consumers that come in for one of their original series will have interest in Game of Thrones on HBO, Power on Starz, or Homeland on Showtime with one-click to sign up and start watching those shows within the TV app.””

  3. The Original NJ ExPat says:

    Lower interest rates making those homes more affordable again…for those worth their SALT.

  4. The Great Pumpkin says:

    So I guess we have a bottom in the market. This is the support level.

  5. Juice Box says:

    Man what a beating Tracy Morgan took on the sale of his Cresskill home.

    “Actor and comedian Tracy Morgan sold his 4,485-square-foot Cresskill home earlier this week for $1.2 million, taking a $1 million loss on the secluded property he bought in 2011, according to a report by Variety.

    https://www.nj.com/entertainment/2019/03/comedian-tracy-morgan-takes-big-loss-on-nj-home-sells-it-for-12m.html

  6. GdBlsU45 says:

    Rumor was that Tracy Morgan got $90 mil from wal mart for their trucker obliterating his limo on the njtp. He’s doing ok.

  7. Leftwing says:

    Lib good news on gator jr. Bantam tryouts are still a couple weeks away, ill throw something out here early next week for you to chew on. Big picture, if his grades are that good, you ever consider a look at new England prep schools…

    Chi, good game last night… cornell closed when needed but opponents in any games going forward aren’t going to give them the opportunities brown did… two minutes in one of Browns better players takes a 5 and game, we score twice on PP. Brown comes out after one down 3-0, everyone knew they were going to come hard, they had us on our heels for first few minutes, would have had a goal but for an outstanding save during a horrible line change. Then Brown gets a make up five minute power play… and take three minors during it putting them on a 4-3 PK where we scored… add a wrap around by our D – should never happen – and game over.

    Good news, Red closed on the opportunities presented, bad news they will not see opportunities like those going forward again.

    Go red!

  8. chicagofinance says:

    left ….. Didn’t Mallot get dq’ed on bullsh!t? WTF was that?

  9. Grim says:

    My dad did a lot of work for him at his new mansion. He’s s really nice guy.

  10. Grim says:

    Money is no object.

  11. Leftwing says:

    Yeah felt like a bad make up call….

  12. Leftwing says:

    I don’t know how the Brown coach held it together. I mean how do you go from all the momentum and getting a five minute PP to down a man with a GA?

    I kept watching for his head to explode lol

  13. The Original NJ ExPat says:

    Yeah Pumps, that’s how market bottoms work. They happen on a Friday and then they’re done. BTW, did you know that you can buy all of the outstanding stock in NHMD for not too much money now? Wouldn’t you like to be a captain of industry? The self-made Polish King of Pancake in a Can?

    Hahhahahahahahahahahahhaahhahahaha

    So I guess we have a bottom in the market. This is the support level.

  14. Chicago says:

    Left: unbelievable game but that sucked.

    Must have been amazing to be there

  15. The Great Pumpkin says:

    Expat, suck a d!ick! You co!ksucker!!

  16. The Great Pumpkin says:

    Expat,

    Enjoy some good tunes, and enough with the attacks.

    https://youtu.be/UYPoMjR6-Ao

  17. The Original NJ ExPat says:

    Speaking of good tunes:

    https://www.youtube.com/watch?v=qOfkpu6749w

    There’s a white man with a white kid
    Living in a white neighborhood
    He’s got an interstate running’ through his front yard
    You know, he thinks, he’s got it so good
    And there’s a woman in the kitchen cleaning’ up evening slop
    And he looks at her and says:
    “Hey darling, I can remember when you were a hot Polack”

    Oh but ain’t that America, for you and me
    Ain’t that America, I lie as I please baby
    Ain’t that America, I got me three degrees, yeah
    Wage Inflation for you and me, oh for you and me

    Well there’s a dropout in a T-shirt
    Listenin’ to a Polka station
    He’s got dropout hair, a dropout smile
    He says: “Lord, the post office is my destination”
    ‘Cause they told me, when I was younger
    Sayin’ “Boy, you’re gonna be dumb as f.uck”
    But my Nana took pity on me, gave me a house
    That was a stroke of luck!

    Oh but ain’t that America, for you and me
    Ain’t that America, we’re something to see baby
    Ain’t that America, bought my house turn-key, yeah
    Pancake in a can for you and me, oh baby for you and me

    Well there’s people and more people
    What do they know, know, know
    Got nice big houses in Bergen County
    And vacation down at the Gulf of Mexico
    Ooo yeah

    And there’s winners, and there’s losers
    My street’s unsafe, no kids’ big wheels
    ‘Cause the simple man baby has the chills, ADD pills,
    And the Wayne Tax bills that kill

    Oh but ain’t that America, for you and me
    Ain’t that America, hey we’re something to see baby
    Ain’t that America, my sewer repair wasn’t free, yeah
    Wage Inflation for you and me, ooo, ooo yeah

    Ain’t that America, for you and me
    Ain’t that America, hey I lie as I please baby
    Ain’t that America, I got me three degrees
    Yeah yeah yeah yeah yeah yeah yeah
    Pancake in a can for you and me, ooo yeah ooo yeah

  18. Phoenix says:

    ExPat,
    That brought tears to my eyes. Of laughter.

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