After a rise in New York State’s home sales in July, the housing market fell slightly during the month of August, ending the strong consecutive five-month growth period. Joe Moshe, Broker/Owner, Charles Rutenberg Realty, believes the best season for real estate has ended and sales will continue to fall in the short term.
According to the New York State Association of REALTORS, the New York State housing market sold 8,323 existing single-family homes in August, a 2.3 percent decrease compared to the July total of 8,583. At the same time, the median sale price in New York for August saw an increase in 2.5 percent from $200,000 in July to $205,000.
“The federal $8,000 tax credit program is ending soon and people are still unsure of the economy. The housing market is quite uncertain right now; it declines even after reports say it is improving. Others say the economy is improving because of the stimulus programs but the consumer has yet to see the benefits of it,” Mr. Moshe said.
Though New York State residents will still be able to take advantage of the recently announced New York State Mortgage Credit Certificate (MCC) that allows first-time home-buyers to get a tax credit equal to 20% of their annual mortgage interest costs, Mr. Moshe said home sales will continue to decline. “Unemployment is still too high and the stock market is not steady. The government will try to find a way to stimulate the real estate market with new programs, but I predict that home sales will decline followed by a steady Up and Down trend for the next year,” he commented.
For more information, call (516) 575-7500 or visit www.crrli.com.
