“Home Sales Slow Slightly but Still Up”… see what I mean?
Every little thing is a big thing these days. Working our way out of the greatest economic downturn in recent history, combined with election year histrionics tend to create some confusing headlines. It’s like seeing a fire ant on the sidewalk, taking a magnifying glass to it and finding you’ve blown the damn thing up!
CNNMoney ran an article late June featuring the ant and the magnifying glass, but buried the picnic basket. If you read only
Home sales slowed slightly in May, as the housing market continues on its bumpy road to recovery.Sales of existing homes in May slipped 1.5% versus the month prior, the National Association of Realtors said Thursday…
well that sounds kinda bad. Until you read the next line “to an annualized rate of 4.55 million.”
And now the picnic basket the ant is presumably heading toward.
The May sales figures are still a big improvement versus last year, up 9.6% compared with the annualized sales rate of 4.15 million in May of 2011, the NAR said. The median existing home price in the U.S. rose 7.9% over the same period, according to the report.
Now I’d like to lay out the checkered table cloth… (bold type mine)
Analysts say that demand among potential homebuyers remains solid, with many having put off purchases during the downturn in the past few years. Home prices remain affordable and mortgage rates are at record lows, but limited access to credit and high down payment requirements are holding back sales.
The last part about the credit scores and down payments? It’s true that lenders and underwriters being more diligent, as they should be, but there are also a wide variety of mortgage products and down payment programs available. The dramatic ending, “holding back sales” may be doing just that.
Read the article in its entirety and tell me what you think.