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Despite record low mortgage rates, house sales volumes are weakening

By golfplan18   Follow   Thu, 4 Oct 2012, 7:09am   832 views   6 comments
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http://ochousingnews.com/news/despite-record-low-rates-sales-volumes-are-weakening

Every year prices and sales volumes increase from January through August, then they decline for the remainder of the year generally hitting bottom on the last business day in December. The pattern repeats every year, and it’s not new or surprising. realtors generally take advantage of this phenomenon to call the bottom every year and to stoke fears of being priced out to generate more spring and summer sales. By fall, many buyers stop looking, particularly those with families who don’t want to disrupt their children by moving during the school year. Over the last five years, sales volumes have...

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1. Strategic Renter Follow Befriend 31 threads 98 comments

   1   8:13am Thu 4 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike   I never believed these house sales numbers. On one hand realtors are screaming there is no inventory yet they are reporting record sales there is a lot of b/s being reported.

2. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   2   8:26am Thu 4 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike   golfplan18 says Despite record low mortgage rates, house sales volumes are weakening What a surprise!

3. Call it Crazy Follow Befriend 229 threads 2,779 comments

   3   8:35am Thu 4 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike (2)   Shocked I tell you, I'm SHOCKED!!!

4. pkennedy Follow Befriend (8) 28 threads 1,341 comments Redwood City, CA

   4   11:07am Fri 5 Oct 2012   Share   Quote   Permalink   Like   Dislike   There simply aren't that many properties out there for sale right now.

5. grendel Follow Befriend 35 comments Kenmore, WA

   5   11:52am Fri 5 Oct 2012   Share   Quote   Permalink   Like   Dislike   It's unlikely that prices will crater for 65% less. It's much more likely that house prices in USD will continue to slowly decline over the next 5-10 years and higher inflation will eat at the value of USD until houses priced in USD have returned to historical norms. The nice thing about relying on inflation to get housing back to normal is that inflation deleverages almost everyone who is in debt to one degree or another. In effect, people buying over the past 12 months (and over the next 12 months-ish) with low-interest rate mortgages are getting that money for cheaper than free.

6. New Renter Follow Befriend (3) 13 threads 2,217 comments San Jose, CA Premium

   6   11:11pm Fri 5 Oct 2012   Share   Quote   Permalink   Like   Dislike   Protected   grendel says The nice thing about relying on inflation to get housing back to normal is that inflation deleverages almost everyone who is in debt to one degree or another. In effect, people buying over the past 12 months (and over the next 12 months-ish) with low-interest rate mortgages are getting that money for cheaper than free. Not if prices continue their downward trend and today's buyers find themselves selling for $0.35 on the dollar!