Bloomberg reports that even though new home sales went up in June, existing home sales decreased while the Association of Realtors shows what really happened with those statistics. Experts were confused that contracts to purchase were so low. Anything thinks that what happened was the tax buyer credit expired making the demand go down. Article source – Existing home sales dip 2.6 percent in June by Personal Money Store.
Economists predicted 4 percent growth in existing home sales
The median forecast by the National Association of Realtors had a much rosier outlook on June 2010. Existing home sales weren’t predicted to fall as far as they did immediately following the April 30 deadline for the government tax credit, when a massive 30 percent drop occurred. Bloomberg reports the 30 percent decrease that happened in May 2010 hasn’t happened like that since 2001 when the median forecast began being kept.
No more $8,000 credit means people have to earn more
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 homes sell the most
90 percent of the housing market are sales of existing homes. Bloomberg talked to Lawrence Yun of the National Association of Realtors who said, “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.”
The specter of home seizure
Numerous 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.
Further reading
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
No comments:
Post a Comment