- by Kerry Curry
- Category: Blog, REO Opinion
- 11:32 AM July 28, 2010
- 2 Comments Join the discussion.
Even the relentlessly upbeat National Association of Realtors (NAR) couldn’t put a happy face on the latest housing report and its larger than expected 5% drop in existing home sales from May to June, writes Kevin Brass, editor of the International Property Journal, according to a new blog post on the Real Estate Channel.
The drop wasn’t unexpected as the first-time homebuyer tax credit had expired on April 30, and the economy is still sputtering.
But Brass notes that even NAR couldn’t sound upbeat about the numbers.
Tough times could be ahead especially if analysts are right about the large numbers of first-time homebuyers who will exit the market with the tax credit expiration.
“At the very least, it might be time for the industry to accept that there is not going to be any sort of quick spike in sales, a dramatic turnaround. It is the prism of diminished expectations, which helps any real estate market analysis these days,” Brass writes.
But Brass points to these nuggets in the NAR report:
- Prices didn’t drop. And, not dropping is very close to “stabilizing,” which is what the market needs.
- The percentage of distressed sales remains flat. At 32% of sales, the percentage was basically unchanged from May and a year earlier. A steady stream of distressed properties into the market is better than a thundering wave, he said.
Read Brass’ entire blog by clicking here and let us know what you think about the housing market’s future prospects.
Comments
2 Responses to “Embracing diminished housing expectations”
Jose Rivas- 6:54 AM July 29, 2010
The thing that I have notice in my area is that most of the first time buyers who took advantage of the tax break were young professionals under 30. looking at the data from mls the urban areas that are popular with young professionals are balanced between sales and active listings and prices have stayed steady in the past 8 months. On the other hand there are some other areas with a large inventory of foreclosures, and most of the buyers are investors where prices keep dropping, and inventory keeps steady increasing specially REO inventory. In reality we all know is going to take some times before a recovery, and the most important thing for that to happen is an increase in employment, and for low interst rates to continue on.
Anthony Rueda- 10:23 PM July 29, 2010
To me, the latest report is of no surprise. I believe we will not make significant progress within the housing industry until unemployment percentages dramatically improve. What is a surprise to me is that 1st-time home buyer's need a tax credits for motivation to buy homes. In my area, a buyer can qualify for a home with no debt on minimum wage. Homes are priced right, rates are incredible, and anybody who can buy should buy.
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