Why Are Home Sales Still Slow In Some Parts Of The Country?

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

While some parts of the Country have seen Home Sales go up, there are other areas that have not, and are still experiencing a sluggish market.  So what is the reason for this? Why Are Home Sales Still Slow In Some Parts Of The Country?  The answer to this question does not have a quick answer.  There are many reasons why home sales are still slow in some parts of the Country.  But their is one overwhelming reason in my opinion.  That reason is financial instability/financial uncertainty.

Even though we are starting to see sign of economic conditions getting better, they have not been good over the last several years.  This has caused  many potential homebuyers to feel insecure about their jobs.  Here in Connecticut we are still experiencing some of our major employers leaving the State.  This leaves workers wondering who is next. 

The uncertainty of the job market makes most people very uncomfortable.  If homebuyers are uncomfortable about their job security, it is very unlikely they will commit to making the single largest purchase of their life.  

Even though CT has recently started to show some signs of improvement, we are still a ways away from a full recovery due to the catch 22 financial instability/financial uncertainty we are in.  Until the job market changes home purchases are unlike to increase to the level they need to catch up with other areas of the country.  Areas of the county like the Huston, TX where jobs have returned, are seeing a higher level of confidence in financial security, and as a result housing sales have increased.

This is kind of like "what came first the chicken or the egg" which has no answer.  Hopefully for the sake of the areas of our country where home sales are still slow, the answer to the catch 22 we are in will not be as allusive as the answer to the "chicken or the egg" question.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 09/28/2017 07:12 PM
Topic:
Real Estate Market Trends
Location:
Connecticut
Groups:
Mortgages
Real Estate Rookie
2017 Market Trend Reports
Tags:
home sales

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Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It is true all markets are not the same. Ours starting taking off at the first of this year and I have been hanging on tight ever since. The low interest rates have certainly helped.

Sep 28, 2017 07:05 PM #1
Rainmaker
3,208,923
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George what a great explanation, find it ironic that two years ago the politicians announced that everything is fine and we have gotten out of the problems... and I continued reading and seeing various parts of the country still having Short Sales and REO's.... I suspect those politicians only looked at the California Real Estate market in the greater Los Angeles area:))Endre

Sep 28, 2017 10:33 PM #2
Rainmaker
3,126,500
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi George... it always comes back to jobs and financial security. People just won't make large investments in an uncertain environment. Great explanation.

Sep 29, 2017 02:08 AM #3
Rainmaker
1,445,421
Kat Palmiotti
406-270-3667 (MT), 914-419-0270 (NY), Broker in NY with Grand Lux Realty and in MT with (coming soon!) - Kalispell, MT
The House Kat

All markets are definitely not the same! This is a good explanation of why that might be true.

Sep 29, 2017 03:24 AM #4
Rainmaker
1,793,677
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

So true George, and sellers read the news and think every real estate market is wild and hot...not true...it depends on jobs and concern about the economy.

Sep 29, 2017 04:14 AM #5
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great observations, George.  The local economies can have a huge impact on the local real estate market.

Sep 29, 2017 04:52 AM #6
Rainmaker
3,827,870
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning George Souto ,

I'm so glad that Debbie Reynolds re-blogged your post as I missed it. Real estate is not the same across the country....some areas are thriving due to job creation others are not. It's definitely not one size fits all!

Sep 29, 2017 05:14 AM #7
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

It's another confirmation that real estate is local. I also think your rationale is spot on. It makes sense. D 

Sep 29, 2017 03:11 PM #8
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