Charles Rutenberg Realty Owner Joe Moshe Comments on Decline in Pending Home Sales in November

Jan. 6, 2010 - PRLog -- Joe Moshe, Broker/Owner, Charles Rutenberg Realty, said the decline in pending home sales in November may lead to a weaker sales figure for December but the extended tax credit program could help in boosting sales over the next few months.  

After a strong sales report of existing homes across the U.S. in November, the National Association of Realtors (NAR) Pending Home Sales Index fell 16 percent to 96.0 from a revised figure of 114.3 in October, after continuously rising for the last nine months. The NAR index is based on pending sales of existing or previously occupied homes, which includes single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction has not been closed. On an average, pending sales close within one or two months of signing.  

“Due to the one- to two-month time lag between the contract and the sale, pending home sales are usually a good indicator of actual sales of existing homes,” Mr. Moshe said. “Based on this, we can expect a drop in December home sales.”

Analysts surveyed by the Dow Jones Newswires had predicted the pending home sales index would plunge by 5 percent. While the decline is three times more than expected, the index is still 15.5 percent higher compared to the previous year. “The previous surge in sales was largely due to the fact that many homebuyers rushed to meet the deadline for the first-time homebuyer tax credit, which was initially scheduled to end November 30, 2009,” Mr. Moshe said.  

Besides extending the tax credit for first-time homebuyers to April 30, the government is also making a tax credit of up to $6,500 available to existing homeowners who are looking for a “step up” by selling their current home and buying another one during the same period. In addition, New York State recently announced cash advances of up to $8,000 on the federal homebuyer tax credit for borrowers using a State of New York Mortgage Agency (SONYMA) mortgage to purchase a home. Launched on January 1 this year, the program is expected to boost home sales further in New York State.  

“While we may see a decline in December home sales, with these additional tax credits and incentives for homebuyers, we may expect to see some gains in sales over the next few months,” Mr. Moshe said.

For more information, call (516) 575-7500 or visit http://www.crrli.com.

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About Charles Rutenberg Realty

Founded in 2006, Charles Rutenberg Realty of New York is the fastest growing, most progressive real estate office in New York, specializing in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent real estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.