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The number of people who signed contracts to buy homes fell sharply in April, 7-month low …


Contracts to buy homes fall to a 7-month low
May 27, 2011, 11:11 a.m. EDT
Associated Press

Journal By Calvin Lee Ledsome Sr.,

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WASHINGTON (AP) — The number of people who signed contracts to buy homes fell sharply in April, hitting its lowest point since fall and renewing fears that a recovery in the housing market is far off.

An index of sales agreements for previously occupied homes sank 11.6 percent last month to a reading of 81.9, the National Association of Realtors said Friday.

A reading of 100 would be considered healthy.

The last time the index reached at least 100 was in April 2010.

That was the final month when people could qualify for a home-buying tax credit of up to $8,000.

Signings are still nearly 8 percent above June’s reading of 75.9, the lowest figure since the housing bust.

Contract signings are considered a reliable indicator of the housing market’s direction. That’s because there’s usually a one- to two-month lag between a sales contract and a completed deal.

But the Realtors group has noted a larger-than-usual number of contract cancellations in recent months. Some buyers have canceled purchases after appraisals showed that the homes were worth less than the buyers’ initial bids. A sale isn’t final until a mortgage is closed.

There “appears to have been a sudden arrest in willingness to commit to a home purchase,” said Pierre Ellis, a senior economist at Decision Economics.

“April sale closings came in noticeably less strong than March contract signings — hinting at mortgage problems,” Ellis said.

The Realtors group said Friday’s report “implies a slower-than-expected market recovery in upcoming months,” in light of rising oil prices, severe weather across the Midwest and South and a rise in applications for unemployment benefits.

Some analysts noted that recent natural disasters are causing a slowdown in construction. They point to the flooding Mississippi River, which has devastated homes and farmlands and closed factories; the tornado in Joplin, Mo., which has killed at least 132 people; and a tornado outbreak in April, which caused an estimated $8 billion in damage in Alabama and six other Southern states.

The Realtors index showed that contract signings were uneven across the country: They rose 1.7 percent in the Northeast but dropped 8.9 percent in the West, 10.4 percent in the Midwest and 17.2 percent in the South.

High unemployment, tighter credit and a lingering fear that home prices have yet to hit bottom are preventing many Americans from buying homes. That’s true despite super-low mortgage rates and home prices that are falling in some areas to their lowest points in a decade.

Overhanging the entire housing sector are waves of foreclosures. They are forcing down home prices.

Economists say it could be several years before the nation’s housing market recovers. Sales of previously occupied homes fell last year to their lowest level in 13 years.

This year is shaping up to be equally bleak. The number of purchases is running at just half the pace of 1963 — even though there are 120 million more people in the United States now.

A reading of 100 indicates the average level of sales activity in 2001, when the index was created. The reading exceeded the 100 threshold from March 2003 to April 2007, before sinking as the country fell into a deep recession.

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Sharp drop in new claims for unemployment: Dropped 29,000 last week …


Stock edge higher after unemployment claims fall
May 19, 2011, 10:25 a.m. EDT
Associated Press

Journal By Calvin Lee Ledsome Sr.,

Owner and Founder of: http://www.LedSomeBioMetrics.com

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NEW YORK (AP) — Stocks opened slightly higher Thursday, extending Wednesday’s gains, after a government report showed a sharp drop in new claims for unemployment benefits. Weaker reports on home sales and economic expectations kept the gains in check.

Shares of social-networking company LinkedIn Corp. jumped 81 percent to $81.76 on their first day of trading. It is the largest U.S. Internet IPO since Google Inc.

The Dow Jones industrial average rose 26 points, or 0.2 percent, at 12,586 in early trading. The Standard & Poor’s 500 index gained 2, or 0.2 percent, to 1,343. The Nasdaq composite index added 4, or 0.1 percent, to 2,819.

The Department of Labor reported that applications for unemployment dropped 29,000 last week, more than expected, to 409,000.

Two other reports raised doubts about the strength of the housing recovery and the overall direction of U.S. growth.

The National Association of Realtors said fewer people purchased previously occupied homes in April. The number of homes sold in foreclosure also declined.

The Conference Board reported that expectations for future economic activity decreased, based on its index of leading indicators. The private research group said the index fell 0.3 percent in April, the first decline since June 2010.

In a sign that the U.S. consumer recovery remains uneven, Big Lots Inc. fell 9 percent to $34.31 after news reports that it decided not to sell itself. The Wall Street Journal said late Wednesday that the company received bids from two private-equity groups that were lower than it had hoped.

Sears Holding Corp. reported softer sales at its Kmart and Sears stores, causing a first-quarter loss of $1.58 per share, worse than analysts expected. The stock fell 3.2 percent to $73.31.

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_________________________________________________________________

Calvin Ledsome Sr.,

Owner and Founder of: 

Thank you for visiting, do come back for more news…
Warmest regards,

PS., Hello Reader, What Party Do You Want Running The US Government 2013? Make Your Selection Below!