New York, NY (PRWEB) October 26, 2012
Real Estate Marketing Insider's Mr. Nergarden commented on news from the New York Times that home resale numbers, after reaching their highest number in two years, began falling. Mr. Nergarden states that this is bad news for the housing market, saying that the news is a reminder of how far the housing market has to go to make a full recovery from the 2008 crash.
Home resales in September fell 1.7 percent to reach 4.75 million units. This was the forecast expected by the National Association of Realtors, and shows a slight downturn from August’s resale number of 4.83 million units. Meanwhile, the home resale median price rose to $183,900, a year-over-year increase of 11.3 percent.
This increase in realtor advertising prices is likely attributable to a combination of decreased foreclosures and thinning inventories of existing real estate. The number of homes available nationwide for resale continued falling last month, with a decrease of 3.3 percent from August to September to land at 2.32 million units. The current rate of sales would exhaust the supply in 5.9 months, according to the National Association of Realtors. This number is the lowest it’s been since March of 2006.
Meanwhile, the sales rate is coming down from its highest level since 2010, with signs that the current rate could stay strong. The Federal Reserve began a program in September to buy housing debt as a method of keeping mortgage rates low; the program has created record low interest rates, which will likely continue driving sales.
The economy still leaves room for concern, however; the United States government has not yet acted to stave off steep tax hikes and budget cuts scheduled for January, and the debt crisis in Europe is cooling investment in America.
The National Association of Realtors, which released this data, is a trade association and lobbying group acting on behalf of real estate professionals. The NAR is the largest trade association in North America; although it took heavy criticism for its supposed role in creating the economic conditions of the 2008 housing crisis, it continues to be the nation’s largest association of real estate professionals, and is often relied upon for statistics and polling information.
Tobias Nergarden released his statement following news reported in the New York Times that housing resale numbers began falling, after peaking at a two-year high. The news accompanied information that home prices continue to rise, likely influenced by a shrinking inventory of resale listings and record-low mortgage rates.
About the Real Estate Marketing Insider: The Real Estate Marketing Insider is a publication providing real estate professionals with insider news, marketing tips and analysis of emerging trends. REMI is based in La Jolla, CA.