Housing index posts biggest jump in 5 years

[Median Democrat]

Source: Associated Press

An index of builders' confidence released Wednesday posted its biggest one-month jump in five years in April as many homebuyers seized on lower prices and incentives and took advantage of lower interest rates and tax credits.

The National Association of Home Builders/Wells Fargo housing market index climbed five points to 14. While still near historically low levels, the latest index reading is the highest since October

* * *
The index hit an all-time low of 8 in January as mounting layoffs, strict mortgage requirements and the worsening U.S. economy sapped demand for new homes.

In response, many builders stepped up sales incentives, slashed prices and trumpeted an $8,000 tax credit for homebuyers enacted in February as part of the Obama administration's economic stimulus package. Mortgage rates, meanwhile, have hovered below 5 percent for weeks, offering an additional inducement for would-be homebuyers.

Read more: http://www.msnbc.msn.com/id/30230273/

[ananda]

1. Are they built with Chinese drywall?

Be scared. Be very very scared.

[Systematic Chaos]

2. And then the alt-A shitstorm hits in a few months...

... and this little puff piece will be completely forgotten.

:banghead:

[iandhr]

3. maybe there is a light in the distance

But I worry the light is a oncoming train

[Winterblues]

4. The elite are buying up the spoils

Property values have dropped by as much as thirty percent and the deal are irresistable to those that don't need financing. Many are Chinese brokers traveling around America looking for deals to gobble up.

[HillbillyBob]

9. If we would quit buying Chinese crap and MidEast oil

and start making things HERE again....
I have always tried to buy American, unfortunately we were sold out by the corporate factory owners.
Perhaps it is time we start building combines of citizens to start factories of own and grow food to eat and trade.

When Levis went to Mexico and Russia I wrote to them and told them I would not buy their products anymore. When RCA went overseas I did the same, I have written many companies telling them I will no longer buy their products, Hersheys for instance.
If we all had gotten off our dead a s and done the same we would not be here.
I remember when it was the Japanese folks coming to buy up stuff here in the 80s
We have both had our jobs outsourced repeatedly.
Of course I am running out of clothes so soon I will be nekid unless I shoot a deer and learn to tan skins to make clothes from!

Perhaps it is time we wall went on strike against outsourceing and imports.
I am no exactly anti global, but damn the corporations only care about profits, they don't give a sh about us, the folks who made them huge by being their employees and making the things that they made profits that let them grow to be international corporations.

[Dappleganger]

10. There are also many who up until the bubble burst

couldn't afford the current market, so now they can own a home.

I also think that people (like us) are having to sell their homes in order to relocate for another job and buy a house in the new place. If we're lucky we will actually be able to get a larger house for less $$ than what we spent here in FL (or pretty close to it).

[bemildred]

5. "While still near historically low levels, the latest index reading is the highest since October" nt

[customerserviceguy]

6. I've been seeing it

I work for a utility company, and I get a LOT more calls from "I bought a home, I need the utility in my name," or "I sold a home, I need the utility out of my name," than I saw just three months ago. Maybe that is because we're out of winter, but it's still been fairly cold around these parts for the last month or so.

Or, maybe there's some hope blooming along with the daffodils out there.

[imdjh]

7. When will they start building starter homes again?

Part of this housing problem has been going on since the 1980's. They stopped building starter homes. Starter homes in close-in areas became "mid century" overpriced, over renovated dollhouses. What determined whether a neighborhood was an "upscale" former starter home community (Like Bethesda MD and Arlington VA) was the size of the lot, and proximity to light rail. Starter homes made of wood, in other areas became more costly, but not nearly compared to the upscales, and the neighborhoods went downhill or stayed the same.

Other factors determining the fate of starter home communities were the size of the lots and code enforcement or HOA/civic association actiivity and power.

Damned few people ned 5 bedrooms and 3 baths. By the time most people move up to these houses, they are almost ready to downsize. We have people around here who buy ridiculously large homes for the exclusivity of the area and one supposes because million dollar homes need to have a certain square footage outside of California.

[Pale Blue Dot]

8. Also in LBN: U.S. FORECLOSURE INDEX: Foreclosures Soar in March, Up 44 Percent Over February’s High

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3832534

Hmmm... could the two be related? I wonder... :think:

[PSPS]

11. "the highest since October"

The National Association of Home Builders/Wells Fargo housing market index climbed five points to 14. While still near historically low levels, the latest index reading is the highest since October.

Sales are always higher in April than they are in October, even in a down market. But this is from a trade group that has a financial incentive to motivate people to think this is the bottom. But, with the Alt-A and Option ARM loans coming along through 2012, there will be a massive wave of additional foreclosures. This is a good thing and will help correct the market unless Obama does something stupid to prolong the agony. Oh wait, he already has! (Bad Bank scheme.)

By the way, sales are improving in some markets for two reasons. First, over half of all sales are foreclosures or short sales. Second, many sellers are realizing that their house really isn't worth what it was three years ago when buyers were awash in cash from their liar's loans, and are pricing at affordable levels.