Pain In Spain Prods Germany To Play Ball

WASHINGTON — U.S. sales of previously occupied homes rose in 2012 to their highest level in five years, spurred higher by record-low mortgage rates and steady hiring. The National Association of Realtors said Tuesday that sales reached 4.65 million last year. That’s up 9.2 percent from 2011 and the most since 2007. Sales are still below the roughly 5.5 million that are consistent with a healthy market. (MORE: What Ever Happened to the Big, Bad “Shadow Inventory” of Homes?) Sales dipped in December to a pace of 4.94 million, down from 4.99 million in November.

WASHINGTON — U.S. sales of previously occupied homes rose in 2012 to their highest level in five years, spurred higher by record-low mortgage rates and steady hiring. The National Association of Realtors said Tuesday that sales reached 4.65 million last year. That’s up 9.2 percent from 2011 and the most since 2007. Sales are still below the roughly 5.5 million that are consistent with a healthy market. (MORE: What Ever Happened to the Big, Bad “Shadow Inventory” of Homes?) Sales dipped in December to a pace of 4.94 million, down from 4.99 million in November.

Marc Faber, publisher of the Gloom, Boom and Doom Report, spoke with Bloomberg Television’s Betty Liu this morning and said that, “If I were running Germany, I would have abandoned the eurozone last week.” Faber went on to say, “In the case of Greece, one should have kicked out Greece three years ago. It would have been much cheaper.”

The Census Bureau

Yves here. Wolf’s article includes some information on how private equity investors are faring with their grand scheme to convert single family homes to rentals. We had raised the issue that the rent levels that had enticed them into the market were a function of scarce supply, and that once they started trying to rent up more properties, their very presence in the market would depress yields. That appears to be happening already, and to a more significant degree than even we cynics had anticipated.

WASHINGTON — U.S. builders started work on homes in December at the fastest pace since the summer of 2008 and finished 2012 as their best year for residential construction since the early stages of the housing crisis. The Commerce Department said Thursday that builders broke ground on houses and apartments at a seasonally adjusted annual rate of 954,000. That’s 12.1 percent higher than November’s annual rate and nearly double the recession low reached in April 2009. For the year, builders started work on 780,000 homes.

WASHINGTON — U.S. builders started work on homes in December at the fastest pace since the summer of 2008 and finished 2012 as their best year for residential construction since the early stages of the housing crisis. The Commerce Department said Thursday that builders broke ground on houses and apartments at a seasonally adjusted annual rate of 954,000. That’s 12.1 percent higher than November’s annual rate and nearly double the recession low reached in April 2009. For the year, builders started work on 780,000 homes.

By EP Vantage:Spain appears to have dropped off radar screens. In part, a disorderly outcome of the Greek crisis continues to be threatened. Italian bond yields and CDS prices have risen above Spain's. Yet, ironically, earlier this week, Spain's central bank warned that its banking problems are bound to get worse.