TENNESSEE - Existing US home sales took a nose dive today as they fell to the lowest level in 15 years. Fears of a double dip recession came to light due to the terrible numbers. The sudden drop is most likely due to the expiration of a home-buyer credit instantiated by the government.
“[The drop off] is really starting to scare people,” both Allan Edwards, co-CEO of The Markets Are Open, and CJ Jones, head of institutional trading at Nollenberger Capital Markets said in separate reports today. “Are we going to have a double dip? Nobody knows.” Edwards called it “a devastating mishap.”
Bill Dolson, 48, didn’t need to see the housing number to know that the recession has returned. Dolson listed his two-bedroom, one-bathroom apartment in Pineridge Heights for $783,500 last month and still hasn’t gotten any bites even though the agent believes that the price is in line with past sales. He plans to take a new job as a preschool custodian next month in Bradford.
“I may have to take a loss on the property in order to support my family,” he said, adding that he was fearful of having to rent it. “I don’t want to be in a situation where I get a renter with a dog or one who cooks with curry. Then I have the expense of cleaning the carpets, repainting, and fumigating the place.”
Real estate gurus concluded that the tax credit caused buyers to speed up their housing buying plans, but now the demand has vanished. “Buyers were borrowing money from friends and family just a month ago to purchase these houses on the cheap,” said Garret Johnson, a real estate agent with Johnson & Johnson Real Estate Services. “People barely have the cash to make a down payment, let alone pay back their relatives.”
The drop recorded a 25% decrease in the West in sales of previously owned homes. Stay tuned for tomorrow New Home Sales number at 10:00am EST.
No comments:
Post a Comment