Home Resale Decline in August
If not only of the 2.7 percent drop of the home sales in August from that of July, the real estate market could have been in a much better condition. Last year’s sales were recorded to have been 2 percent much more advanced than that of this year, having this years’ average value of $177,700.
Considering the increasing numbers of individuals losing their job, many of them could not anymore manage to invest even if prices have gone short. Others, on the other hand are still waiting for the lowest possible prices an agent can offer before purchasing. Therefore, more short sales likely await us for the coming year.
Government project such as the $8000 tax credit for new homeowners had served as a stimulus for buyers in helping our economy achieve a state of self – recovery or sustainability in the real estate industry. But given the figures, we haven’t reached that yet as what Lawrence Yun, the National Association Realtors chief economist settled; even so, realtors mark this drop temporary.
Consequently, many had been wondering of what could possibly occur next in the real estate market as the $8000 tax cred
No wonder why corporates and high end housing authorities have started to slash their prices. With the dip in sales and drop in overall index, many huge companies like the MGM mirage and dubai world are slashing their condo prices by 30%. If present situation prevails I am uncertain of the future.
A three percent drop is really just a couple hundred homes though. With the time lenders are taking these days, I think if everything that was suppose to have closed we may have seen a rise! I can testify that everyone, I mean everyone, of my closings have closed 2 and 3 weeks late because of lenders. It’s not the individual loan officers at the bank but the new stringent loan conditions that are required. I can imagine there will be some white knuckle closings before the November 30th deadline. I sure hope they extend it!