Existing-home sales increased by 0.6%, after rising 0.5% in October, the
National Association of Realtors said. The back-to-back increases were the first
since March and April 2005. In a separate report, the National Association of
Purchasing Management Chicago said its index of area business activity rose
to 52.4 in December on a seasonally adjusted basis, a level that reflects expansion.
Also, consumer confidence this month shot higher. Economists and others weigh
in on the data.
All three indicators firmer than generally expected, revealing
a rebound in industrial conditions in the Midwest, a firming in consumer confidence
and labor market attitudes, and stabilization in sales of existing homes. –
Goldman Sachs Economics
There is simply no getting around a few basic facts: 1) While
[home] sales aren’t falling sharply anymore, they’re not improving much, either.
2) Supply is still at astronomically high levels and 3) Homes remain relatively
unaffordable, despite the recent minor declines we’ve seen in mortgage rates
and home prices. It’s going to take bigger price concessions … more incentives
… and most importantly, lots of TIME to work off these conditions. In other
words, 2007 should be another weak year for the housing market." — Mike
Larson, Weiss Research
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