In an article in the Wall Street Journal July 27, MARK GONGLOFF writes
.... That is a big number, at first glance justifying Monday's 4.5% leap
in the Dow Jones U.S. Home Construction Total Stock Market Index. But
it fails a close inspection.
First, home sales quite often jump in June, the height of the spring
selling season. When trying to gauge the strength of home sales, then,
it makes more sense to compare them with the same month a year ago.
That comparison is less kind -- sales were down 21.3% from June of 2008.
Seasonally unadjusted data show a total of 36,000 new homes were sold
last month, the lowest June total since 1982, notes Richard Moody,
chief economist at Forward Capital. Full article
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In speaking with two trusted sources I've known for years
I learned that while residential closing activity in our area has been quite significant, both attorneys indicated that nearly 80% of their current business for the past several months has arisen from short-sales or foreclosures.
While this may seem to continue the sense of despair felt by many homeowners wishing to sell their properties, the truth is it's a good sign.
A review of the MRIS system indicates a significant decline in the number of homes currently on the market as "distressed properties", and the number of vacant homes currently offered for rent has decreased significantly, too.
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