Existing Home Sales Fell 2.6 Percent In June
While new home sales showed a rise in June (but a marked decrease in July), the Association of Realtors has revealed the dirty underbelly of those statistics, reports Bloomberg. Experts were confused that contracts to purchase were so low. The indication here is that as the home buyer tax credit expired, demand spiraled downward.
Existing home sales were intended to grown 4 percent
A better forecast was expected in June 2010. 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
Nobody is getting a pay raise when many still do not have jobs in this recession that continues on. It will be nearly difficult to get a home considering the prediction from Treasure Secretary Tim Geithner that unemployment in August could be going up. 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
The housing market could possibly be taking longer to fix considering 90 percent of houses sold are existing homes. Lawrence Yun, chief economist of the National Association of Realtors, told Bloomberg that “There might be a couple of additional months of slow home sales activity before picking up later in the year, provided the job market improves.”
Home seizure fear
Many homes are being seized. 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. The market has gotten worse than ever reports Donald Horton from D.R. Horton Inc., and he believes it won’t end for a long time.
Find more information on this subject
Bloomberg
bloomberg.com/news/2010-08-03/pending-sales-of-existing-u-s-homes-unexpectedly-decreased-2-6-in-june.html
Homeowners who are staying put
youtube.com/watch?v=5c0oemzh-vU
Technorati Tags: existing home sales, national association of realtors, new home sales, real estate market
Tags: d r horton inc, existing home sales, national association of realtors
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