U.S. Home Sales Plunge Most Since 2008

Posted by Ed 11 mths ago
Home Sales Plunged Most since 2008, Condos -41%. First-Ever April-May Price Drop in Normally Red-Hot Spring Selling Season
Sales of existing homes (closed transactions of single-family houses, townhomes, condos, and co-ops) plunged 29% in May compared to May last year, not seasonally adjusted, to 340,000 homes, according to the National Association of Realtors.
The “seasonally adjusted annual rate of sales” (SAAR) – which is generally used as the headline number – plunged 26.6% year-over-year to 3.91 million, the lowest rate of sales since the depth of the Housing Bust in October 2010 (data via YCharts): 

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Ed 10 mths ago
It Starts: Mortgage Delinquencies Suddenly Soar at Record Pace
And this is just for April, the very beginning of the Pandemic’s impact on housing.
OK, it’s actually worse. Mortgages that are in forbearance and have not missed a payment before going into forbearance don’t count as delinquent. They’re reported as “current.” And 8.2% of all mortgages in the US – or 4.1 million loans – are currently in forbearance, according to the Mortgage Bankers Association.
But if they did not miss a payment before entering forbearance, they don’t count in the suddenly spiking delinquency data.
These delinquency rates are the first real impact seen on the housing market by the worst employment crisis in a lifetime, with over 32 million people claiming state or federal unemployment benefits.
There is no way – despite rumors to the contrary – that a housing market sails unscathed through that kind of employment crisis. 

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