Categorized | Residential

Home Sales Increase Slower Than Expected in the United States

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The number of residential real estate properties in the United States posted an increase of roughly one percent in the last month, boosting the annual pace of home sales in the country. While the increase is certainly positive news, the overall projected rate of home sales for the year is down in comparison to last year.

New home sales are expected to hit their lowest levels ever, as the abundance of foreclosure properties on the market has made building a new home not nearly as attractive as it once was. Homebuyers are able to buy a foreclosed property that may be twice as large and half as expensive as a newly built home. With the job market anything but certain, it is likely that the current trends will continue into next year.

There is simply not enough demand for homes at this point in time for new homes to be sold as levels that they once did in the past. Many analysts believe that the real estate market will improve in the future, though there has been no indication as to far away from now those improvements will take place. Some believe that the market is two or more years away from any real signs of recovery.

Overall demand and sales of newly built homes varies depending on the region of the United States. The Midwest has experienced strong gains in the past few months. However, the South has lagged very far behind the other regions. The West, which had struggled earlier this year due to the number of foreclosures available, actually experienced a very strong increase in the past reporting period.

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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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