We had a bit of good news last month in the housing market, when we found out that home sales rose from January to February of this year. Excellent! We’re stimulating the economy! However, sales dropped by about 3% in March. With unemployment remaining fairly high, this should not be a huge surprise. It’s a sad day in America when we get bad news like the monthly unemployment figures and learn that about 640,000 people lost their jobs…and call this GOOD news (considering the numbers could have been a lot worse).
Prices of home are still dropping in most areas of the United States. Foreclosures are still an issue, and mortgage rates are near historic lows. These are great ingredients for purchasing a new home, but if people are losing their jobs, new home purchases and house values may continue to sink even further.
What does all this tell us about the housing market and the economy as a whole? Nothing really. The economy can bounce back as quickly as it crashed. The only negative is that no one knows when this will happen.
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Topics about Foreclosures » Archive » Mortgage News: Home Sales Declining Again
April 23, 2009 @ 12:19 pm