Home sales numbers during July were the worst they have been in years. Real Estate inventory is up in most areas, and the confidence real estate agents have is substantially down. The government stimulus is looking like it was just a waste of money. There is a good chance we’ll see the recession double dip. Point 2 Technologies does a monthly survey of real estate agents, that determines their opinions of the real estate market. August results show the lowest confidence, 4.87% since the survey started over a year ago. In November of last year, before the expiration of the first homebuyer tax credit, the confidence index rating showed a confidence level of 6.03%. Two months earlier real estate agents had a higher confidence rating of 5.76%. August marks the third straight months of confidence declines.
Having confidence will determine future buying activites. If buyers don’t have confidence that purchasing Florence AZ Real Estate will be a good investment, they won’t buy homes. If buyers don’t have confidence they will have a job a year from now, they won’t purchase a new Logan Condo. The decrease in confidence indicates that home sales will decrease in the near future. As home sales decline, the number of homes for sale increase. Any time there are more real estate listings than the number of buyers, home values decline. As real estate values drop, the number of foreclosure homes goes up. Increased foreclosures leads to future price drops.
The home sales statistics released by NAR show a substantial drop in home sales. The number of homes sold in July was more than 25% down compared with June’s home sales figures. There has never been a month with a larger monthly decrease in home sales. It was the home buyer tax credits that caused a temporary, and artificial recovery of the housing market.. It fully appears that the U.S. housing market is going to decline before it recovers.