New Home Sales Are the Worst since 1995
Purchases of new homes fell to a new 12 year low ending in Dec of last year, the biggest annual decline on record. The medium price also dropped last month by 10% from Dec 2006, the biggest decline in 37 years.
These reports may reinforce the concern that falling home values and stricter lending rules will lead to more foreclosures and hurt consumer spending. The Federal Reserve as of late has been making drastic cuts, hopefully these rate cuts will help to avoid a recession.
These numbers may be a blow to the ideal of a housing-market recovery.
The broader economy is very close to falling over the edge and according to many of the experts the Fed really need to thing aggressively on cutting rates as if we were in a recession.
The government's economic stimulus plan also seeks to address the housing slump. The accord includes a provision allowing Fannie Mae and Freddie Mac, the largest U.S. Mortgage finance companies to temporarily buy mortgages of as much as $729,750, exceeding the current $417,000 federal limit.
The National Assoc Of Realtors also stated recently the sales of previously-owned homes, which account for about 85% of the market, fell more that forecast in December, capping the biggest yearly slump in more that a generation.
According to a lot of the experts, the real estate market will not make any tangible type of recovery until at lease 2009.
Good luck
James Loftis P.A.
www.RealEstate911.com
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