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26 August 2008

Home resales rose, but stocks also in July

The home resales have increased more than expected in July the USA, but stocks have also risen to a record level, which suggests a slow absorption of the crisis in real estate.
Sales of dwellings grew by 3.1% in July compared to June to reach 5 million (annual rate), said Monday the national group of Realtors (NAR). It is a good surprise for analysts who tablaient over 4.90 million transactions.

The figures for previous months were revised slightly to 4.86 million units instead of 4.85 originally announced.

Analysts, however, have made clear this up with caution.

She "probably reflects an increase in sales of homes seized at very low prices, plus an acceleration in the market normal individuals," said Ian Shepherdson of High Frequency Economics.

"It will take time before a real improvement is taking shape. Prices will continue to decline," he added.

The figures on real estate are followed very carefully because this sector is at the epicentre of the economic and financial crisis that shook the USA for over a year now.

The week should be rich in fresh information on the sector.

Tuesday, the Department of Commerce Tuesday will publish the figures on new home sales for July, and analysts guetteront also the Case-Shiller index on prices which is considered as one of the most representative.

In July in the old, higher sales involved in both houses (3.1%) and flats (3.4%) in July, said the NAR.

"Sales have accelerated markedly in several markets in Florida and California," said Lawrence Yun, chief economist of the NAR.

The Florida and California are the regions that have experienced the biggest real estate boom a few years ago. They have since taken the full brunt of the downturn in the sector, which is reflected in the levels of seizures of housing among the highest in the country.

Nationally, sales fell by 13.2% over one year and median prices fell by 7.1% in July compared to the previous year, amounting to 212,400 dollars, "said NAR .

Indeed, the number of dwellings on the market has made further progress, which mechanically weighed on prices.

Inventories rose by 3.9% to 4.67 million, which is a record level. It should be 11.2 months to completely sell these stocks at the pace of sales in July, against 11.1 months in June.

At the New York Stock Exchange, the Dow Jones briefly stalled after the publication of this report, to resume slightly.

"The market has retained two things: the stocks of unsold houses are up strongly, and 40% of sales are sales made under pressure, ie sales at a loss: they are the banks that are disposing of that they have in their balance sheets, "said Gregori Volokhine, Meeschaert Capital Markets.

The rise in stocks is mainly due to a sharp rise apartments, while a decrease was recorded for houses, "said NAR.

"Stocks remain at a high level in large parts of the country and it will take time to absorb completely," said Mr Yun.

"We expect that the conditions become more normal in 2009," he added.

Sales rose by 9.7% in the west and 5.9% in the north-east. They increased by 0.9% in the centre and transferred 0.5% in the south.

by erectusplus at 06:41:00 |