Week Recap

The news last week was generally favorable for housing and lending, though you would hardly know it by the pessimistic spin applied by media commentators. For instance, sales of existing homes unexpectedly rose 0.4% in November to an annual rate of 5 million units, according to the National Association of Realtors. Unfortunately, the accompanying commentary was generally nuanced pessimistically in the media. In another example, orders from U.S. factories rose more than forecast in November. The 1.5% increase was the most in four months and followed a revised 0.7% increase in October, according to the Commerce Department. Nevertheless, the corresponding commentary generally mirrored that of a Lehman Brothers economist who said: “Manufacturers are becoming more cautious. We do think the next several quarters are going to be a prolonged period of weakness.'' There was genuinely negative news: Hiring in the U.S. slowed more than forecast in December and unemployment jumped to a two-year high, rising from 4.7% in November to 5.0%. That news was greeted with the obligatory, if not patronizing, “I-told-you-so” explanations. There are, of course, genuine economic concerns, as most of us are well aware. The point is to explicate that no matter what positive news is disseminated at this point, it's unlikely to be received favorably. Commentators are lagging indicators: They aren't going to presage the possibility of a housing or lending recovery until it is well under way.

Eric P. Egeland
RE/MAX Advanced
847.337.7090
http://www.homesinbg.com/bgblog

Weekly Update

Though tragic, last week’s unfortunate assassination of former Pakistan Prime Minister Benazir Bhutto created only a minor ripple in stock and bond markets. Housing was again the more pressing concern. On that sinking front, home prices in 10 major metropolitan areas in October were down 6.7% from a year earlier, according to the S&P/Case-Shiller home-price indexes. The decline exceeded the previous record year-to-year decline of 6.3% in April 1991, when the economy was emerging from a recession. Meanwhile, sales of new homes continued on their downward spiral, falling to a 12-year low in November. Specifically, purchases tanked 9% to an annual pace of 647,000, which exceeded even the lowest estimate. The continued slowdown in home sales is also taking a toll on mortgage demand, with mortgage-application activity – both refinance and purchase – recently posting at the lowest level of the year, according to the Mortgage Bankers Association.

Eric P. Egeland
RE/MAX Advanced
847.337.7090
www.HomesInBG.com

Buffalo Grove updates for 12/12/07

Fairly slow day yesterday.

Single Family Homes
-1402 Westchester a 4bed 3.5bath was listed for $625,000
-580 Checker a 4bed 2.5 baht closed for $435,000

Attached Homes
-3 New Listings
-101 Old Oak a 2bed 2bath listed for $225,000
-2514 Waterbury a 3bed 2.5bath condo was listed for $475,345
-150 Lake Blvd. a 2bed 2bath condo was listed for $191,900
-No closings