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Home Resales Drop

By
Real Estate Agent with Elite Home Sales Team OC BRE# 02066030

You may have seen the head line Home Resales Drop or something like it in your newspaper.  The National Association of Realtors published the sales of resale homes drop of 2.7% on Thursday.  Why do they always have the negative spin?  The statistics show a 3.4% increase when compared with a year ago. 

Although the results surprised the analysts, who had expected an increase to the sales and did not expect to see resale homes drop in number of sales.  If you watch statistics month to month you need a series of months to be able to determine the significance to a one month chance.  It is truly too soon to know if the resale home has dropped in volume. 

The inventory of unsold homes on the market fell to an 8.5 month supply the lowest level in 2 years.  That again is a positive note.   I know that negativity does sell newspapers but we need collectively report the findings in a way that will not hurt the markets more than they have already been hurt. 

The key unknown is the $8,000 tax credit for first time buyer that is scheduled to be dropped at the end of November.  Congress is facing pressure to extend the program and possibly increase it to all buyer's not just the first time home buyer's.  It is still uncertain how much support the bill has with congress. 

First time home buyers are purchasing one in three homes that were sold in August.  The other major player in the current market is the investor who is buying up the great deals in the market place (short sales and the foreclosures).  Nationwide sales are still down nearly 30 percent from their peak nearly four years ago. 

So, again I ask why the negativity Home Resales Drop?

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