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REO News
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Friday, 26 February 2010 00:00 |
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During the month of January, existing home sales unexpectedly dropped for the second month straight.
Existing home purchases fell 7.2 percent to an annual rate of 5.05 million, which is the second largest drop on record.
In December, existing home sales dropped it biggest record of 16.2 percent.
“The recovery in housing is likely to be a lot more prolonged than many had hoped,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “Outside of the tax credit, there isn’t that much improvement.”
Expert economist had predicted existing home sales would increase to a 5.5 million rate during January.
During February consumer confidence dropped.
According to a report from the University of Michigan consumer confidence dropped to 73.6 from 74.4 in January.
According to experts, it would take 7.8 month to sell 3.27 million previously owned homes.
In January, the average price on a home was $164,700.
First time homebuyers who purchase previously owned homes have dropped to 40 percent from 43 percent in December. Lawrence Yun believes the renewal of the tax credit has failed to spur increased demand.
Existing single-family home sales have dropped 6.9 percent to an annual rate of 4.43 million.
Sales in the Northeast region have dropped 11 percent, 7.4 percent in the South, 6.9 percent in the Midwest and 5.2 percent in the West.
RealtyTrac predicts 3 million homes will be reposed by the mortgage lenders this year. In 2009, 2.82 million homes were reposed. Foreclosures have led home prices to drop.
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Last Updated on Friday, 26 February 2010 00:00 |
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