CNBC Writes: Pending homes plunge, surprising economists
Signed contracts to buy existing homes dropped 8.7 percent in December as abnormally cold weather hit much of the U.S., according to a new report from the National Association of Realtors.
The plunge caught economists by surprise. Economists polled by Reuters had forecast pending home sales would tick up 0.3 percent.
This pending home sales index fell to 92.4 from a downwardly revised 101.2 in November. These signed contracts are an indicator of sales in January and February, and are at the lowest level since October 2011.
“Home prices rising faster than income is also giving pause to some potential buyers, while at the same time a lack of inventory means insufficient choice. Although it could take several months for us to get a clearer read on market momentum, job growth and pent-up demand are positive factors,” said the association’s chief economist, Lawrence Yun.
There is close to 1 million Real Estate Agents in the US. I think it’s time we give a serious consideration to rounding them all up and shipping them to Siberia. Maybe we can make some sort of a deal with Mr. Putin in exchange for oil or natural gas. For all I care, let them sell pine trees to hungry bears in Taiga and get paid with berries. We should start with Lawrence Yun.
Come on!!! Does anyone even believe NAR fools anymore. Keep in mind, NAR is the same organization that was cheering the housing bubble all the way until it blew up and killed all of those poor souls in Florida, California and Nevada who couldn’t fog a mirror yet each had 10 houses to their name. Now they are blaming the “cold weather” for a severe plunge of 8.7%. Jesus Christ, I guess it was too cold for all of those Chinese investors and hedge funds with bags full of money to buy real estate in southern states.
Unlike NAR, dear reader, I will not insult your intelligence. You see, in my October post “I am Calling For A Real Estate Top Here“, I clearly outlined a case for why the real estate market is finishing its “Dead Cat Bounce” and is about to roll over to continue its bear market that started in 2007.
What is a dead cat bounce? Allow me to present a powerful illustration I worked on for 2 days.
Such bounces exist, once again, to fool the masses. They act to suck people back in with the promise that the worst is over. Fools rush back in only to have the trap snap shot right behind them. On Friday I wrote about Hedge Funds funneling money to plumbers and dentists so they can become “landlords”. If that doesn’t scream out “Market Top”, nothing else will and you are on your own.
Today’s real estate market is not the function of economy, jobs, supply/demand, family formation or any other crap real estate propaganda machine (aka NAR) would like you to believe. It is a function of credit and speculation.
It is has been artificially driven up by over $3 TRILLION of monopoly’s money being pumped into our economy by Uncle Ben. No, not the Uncle Ben that sells rice, but the one at the FED.
When the credit bubble goes, you will find the real estate bubble collapsing along with it…..again.
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Why Is National Association of Realtors Trying To Destroy America …..Again Google