U.S. existing home sales tumble in warning sign for housing market

[WhiteTara]

Source: Reuters

U.S. home resales fell sharply in February in a potentially troubling sign for America's economy which has otherwise looked resilient to the global economic slowdown.

The National Association of Realtors said on Monday existing home sales dropped 7.1 percent to an annual rate of 5.08 million units, the lowest level since November.

Sales have been volatile and prone to big swings up and down in recent months following the introduction in October of new mortgage regulations, which are intended to help homebuyers understand their loan options and shop around for loans best suited to their financial circumstances.

February's decline weighed on investor sentiment, with the S&P 500 stock index falling after the data was released.

Sales fell across the country, including a 17.1 percent plunge in the U.S. Northeast.

Read more: http://www.reuters.com/article/us-usa-economy-housing-idUSKCN0WN1I6

[abelenkpe]

1. ""Finding the right property at an affordable price is burdening many potential buyers," said NAR"

Duh.

[Mika]

2. More tax cuts should fix it.

[Manifestor_of_Light]

3. the main reason the rent is too damn high is

That property taxes are ridiculous, especially in states with no state income tax. That gets passed on to the renter so the landlord can make a bit of profit. Then you have thievery and repairs cutting into profit. The valuations go up 5 or 6 percent a year sometimes too.

[MADem]

4. Yes indeed. I like low housing prices.

I don't think people should have to hand over half their pay to have a roof over their heads.

Housing should be affordable for everyone. I regard it like schooling--you shouldn't have to live in a particular place to get a good education, and you shouldn't have to live in the middle of nowhere to have affordable housing.

[C Moon]

5. Great—and with interest rates going up.

[abelenkpe]

6. Interest rates are going up?

You mean banks will offer more than .075 on savings?

Pretty sure I read a recent article where Bernanke was advocating for negative interest rates.

http://www.brookings.edu/blogs/ben-bernanke/posts/2016/03/18-negative-interest-rates

[C Moon]

7. There has been talk about the feds raising the rates

that's what I was referring to.
Thanks. I read about the negative rates. That would certainly help.

[Fiendish Thingy]

9. Rates have gone up already

And Yellen has said there will likely be two more increases this year.

[Scuba]

8. No one could have predicted that.

[no_hypocrisy]

10. Unintended consequences of tax cuts and wealth redistribution?