Existing home sales dip 2.6 percent in June

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. Experts were confused that contracts to purchase were so low. Everything thinks that what happened was the tax buyer credit expired making the demand go down. Source of article – Existing home sales dip 2.6 percent in June by Personal Money Store.

Economists predicted 4 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. Bloomberg reports that the 30 percent decrease that happened in May 2010 hasn’t happened like that since 2001 when the median forecast began being kept.

Earn more with no $8,000 credit

The recession continues meaning high unemployment and raises in pay nonexistent. Treasury Secretary Tim Geithner thinks unemployment will be going up which means it will be hard to get a home nevertheless. Stocks aren’t doing any better with Standard and Poor’s 500 bad news of dropping 0.6 percent.

More existing home sales

In fact, 90 percent of the U.S. housing market consists of existing home sales, so the recent downturn doesn’t bode well for a housing market recovery. Bloomberg talked to Lawrence Yun of the National Association of Realtors who said, “There could possibly be a couple of additional months of slow home sales activity before picking up later within the year, provided the job market improves.”

Home seizure fear

Then there are those pesky foreclosures. Mortgage rates are doing really well being down to 4.54 percent although you will find 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.

Additional 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