Home sales of existing homes have fallen in May by over 2 percent. This is no doubt a result of the non existent tax credit incentive that has expired. The drop in sales was 2.2% as if 2.2% of the buyers that were present last month had dropped off the market. The discount or "coupon" for first time home buyers was also dropped from the market. The use of coupons or the coupon rate is known to keep pace @ 2.2%. Hmmmmm....
These home sales figures were of course issued by the National Association of Realtors.
The doom Sayer or analysts as we once knew them are calling for a housing price tumble next month arguing that with out the incentives of the housing tax credit all hell could break out next month.
For those of you who are not familiar with the tax credit it was a 8,000 credit for new home buyers.
From the low in home sales in 2009 we have climbed about half way back up towards the pinnacle.
In my humble opinion this is about right and any more to soon would be to much. Lets face it there were to many sales prior to the housing crash and financial hardship that swept this country.
Also I can only say no duh... with the credit gone folks are gonna be 8000 short in many cases. thus a drop. the drop was at the coupon rate which is kinda logical.
I say stop crying. Yes we miss the government financial incentives. But it is ok.
Another interesting point that i read from AP was that in May 31% of sales were via a short sale.
Interesting point number two was that 46% of home buyers were new home buyers.
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Has anyone done a short sale in Real estate? Let me know what the lenders are looking for. Anyway thanks for this great post.
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