186 ordspråk av David Lereah
David Lereah
Although we've been expecting sales to ease, it's clear the market has tremendous momentum, ... The improving job market and higher consumer confidence are feeding into a large demographic demand for housing.
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As a result, we now expect to set records for both existing and new home sales this year.
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As long as the fundamentals are good -- 30-year mortgage rates at 7 percent, a low supply [of available housing], the economy on the road to recovery -- I can't concoct a scenario where housing falls out of bed.
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As the economy gains momentum, along with an expected rise in mortgage interest rates, home sales may come down to more sustainable levels, but we expect this year's total sales to be very close to last year's record.
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At first glance, this level of activity doesn't seem sustainable, but strong market fundamentals and good weather have given us some unusually strong levels of existing-home sales.
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Changes in the overall direction of the housing market are akin to a large ship making course corrections - it takes some time for the driving factors to materialize as a change in the sales level. In many recent transactions we're looking at a delayed effect of mortgage interest rates that peaked in November but are now lower than expected. Mortgage applications have trended up in recent weeks, so we shouldn't be surprised to see pending home sales rise in the next couple months.
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Changes in the overall direction of the housing market are akin to a large ship making course corrections – it takes some time for the driving factors to materialize as a change in the sales level. In many recent transactions we're looking at a delayed effect of mortgage interest rates that peaked in November but are now lower than expected. Mortgage applications have trended up in recent weeks, so we shouldn't be surprised to see pending home sales rise in the next couple months.
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Clearly the air is coming out of the balloon. We're transferring from a sellers' market to a buyers' market.
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Clearly, mortgage interest rates that are near 30-year lows are bringing many buyers into the market at the beginning of the traditional home-buying season, ... and we're counting on the Federal Reserve to continue its accommodative interest rate policy to keep housing strong.
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Considering the nation essentially came to a halt during the week of the attack, we knew there would be a hit on home sales activity.
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Demand is not slowing down. It's just going to another location.
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Existing home sales should stay below the record levels experienced for the last two years, but they'll maintain a historically high pace.
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Favorable conditions in April caused existing-home sales to rise to their fifth-best showing ever -- a pace that will be difficult to sustain but demonstrates that the housing sector will be close to a record this year.
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for the foreseeable future.
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For the rest of 2002, we're not expecting any big movements in the month-to-month sales pace, but we still expect above-normal rises in home prices due to a persistence of lean housing inventories on the market,
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