Resale homes decline slightly in August
The scenario could have gone a little better for the real estate market if not only the decline of the August home sales which apparently, according to the records dropped 2.7 percent from that of July.
Sales were actually higher 2 percent last year nationally in comparison to that of this year which fell from July to August with median price this year of $177, 700.
Several factors contribute to this drop; one factor is the continuous job loss of many individuals. With escalating rate of unemployment, more short sales are to be expected next year. Hence, people could not afford to buy a place to live. Another factor to be considered, buyers are actually waiting for the prices to go down further near bottom before investing a new home.
The $8000 tax credit for new homeowners served as an incentive; enabling the real estate industry to achieve – which everybody hopes for – sustainability. But with the present trend, we haven’t been able to reach that yet, as what Lawrence Yun, National Association of Realtors chief economist had stated. Yet, realtors consider this downfall only temporary.
Though, as the nearing of the tax credits’ deadline draw near, which would eventually end on November 30, many are actually interested about what will happen to the economy.