Home sales up, home sales down

Existing home sales are down to another record low, from the New York Times:

Sales of previously owned homes, which make up the bulk of the housing market,
dipped 1 percent in April, to an annual rate of 4.89 million, the second
consecutive month that sales have declined. That figure represents another
record low, although the report, put out by the private National Association of
Realtors, dates only to 1999.

But, on the other hand new home sales are up. From CNN:

New home sales rose unexpectedly in April but remained near historically low
levels, according to a key government report on the battered housing market.

April sales came in at a seasonally-adjusted annual rate of 526,000, a
Census Bureau report showed, up 3.3% from a revised 509,000 in March, but 42%
below April 2007. The reading was above the consensus forecast of 520,000,
according to economists surveyed by Briefing.com.

The median price of a new home sold in April was $246,100, up 1.5% from $242,500 a year earlier.

The report showed a 10.6-month supply of homes available on the market.

Perhaps all of the discounting, upgrading, and other perks offered by homebuilders are finally having some effect on new home sales.

Photo: See-Saw, originally uploaded by pittsinger.

Builders: Little Confidence

The latest National Association of Homebuilders market index remained unchanged in April, just shy of its record low for the third consecutive month.

The index, which comes from a survey of residential developers across the country, gauges builders’ perceptions of current conditions, interest from potential buyers, and expectations of sales in the next six months.

Driving the homebuilders’ lack of confidence: tighter lending standards, rising defaults, and fear about the market’s future – all of which have kept buyers on the sidelines.

Investors looking for guidance in the days ahead are well to look to the big homebuilders. While most investors generally are more adaptable to specific market conditions, the overall objective of the typical investor and the large homebuilder is the same: to sell houses.

Sand Castle, originally uploaded by crossmage.