Categorized | Residential

Home Sales in the United States Fell for Second Straight Month

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In what is a sign of the times, the number of sales of residential real estate properties fell for the second straight month in October. The number may continue to drop in the coming months due seasonal patterns, and a job market that is still rather weak.

The number of sales fell more than two percent in the last month, and as such, prices continue to drop. Historically low mortgage loan rates have done little to persuade buyers to enter the property market, as lending restrictions have become incredibly stringent. In fact, many of those who would consider purchasing a home have been unable to do so due largely in part to lending standards that have becoming impossibly stringent.

Other potential homebuyers who would qualify under the new lending restrictions have opted to wait, as there is strong reason to believe that housing prices will continue to drop even further. Analysts believe that the residential real estate market has not yet bottomed out, and thus, prices will fall a bit further in all except the super high-end prime markets.

There are still many foreclosures that have not yet entered the market, which has actually mitigated the overall drop in property prices. These properties, though, are likely to hit the market shortly, thus causing an even further drop in property prices. Foreclosure listings had temporarily been halted due to legislation. However, now that everything has been cleared, they will likely flood the market.

Despite the housing market struggles, homebuilder confidence has increased slightly in the most recent months. Whether or not that confidence will continue to increase, though, has yet to be seen.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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