While new home sales showed an increase in June (but a marked decrease in July), the Association of Realtors has revealed the dirty underbelly of those statistics, reports Bloomberg. Contracts to purchase previously owned homes were down that month, something that experts did not predict. Every little thing thinks that what happened was the tax buyer credit expired making the demand go down. Source for this article – Existing home sales dip 2.6 percent in June by Personal Money Store.
There was designed to be a four percent growth in existing home sales
June 2010, the National Association of Realtors expected things to get better. The tax credit expired April 30, and it was very unexpected for there to be the 30 percent drop. Since 2001 when the median forecast started being kept, the 30 percent drop in May 2010 has been the largest reports Bloomberg.
Harder to get home without $8,000 credit
The recession continues meaning high unemployment and raises in pay nonexistent. As Treasury Secretary Tim Geithner predicts that unemployment will increase in August, existing home sales probably aren’t going to be trending upward for a while. Standard and Poor’s 500 went down 0.6 percent which doesn’t help stocks.
Existing home sales are the bulk of the housing market
90 percent of the housing market are sales of existing homes. Lawrence Yun, chief economist of the National Association of Realtors, told Bloomberg that “There could be a couple of additional months of slow home sales activity before picking up later within the year, provided the job market improves.”
The specter of home seizure
Then there are those pesky foreclosures. Mortgage rates are doing really well being down to 4.54 percent although there are already 38 percent more foreclosures than there were last year reports RealtyTrac, Inc. D.R. Horton Inc. has the home builder Donald Horton who says there is not an end he can see in how bad the market has gotten.
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Homeowners who are staying put