Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the decrease in existing home sales during the month of June is a reflection of the delays in sales closings as lenders are still processing applications from those taking advantage of the federal tax credit, which expired on April 30. While sales numbers may be higher after the lenders catch up on their paperwork, Mr. Moshé says that fewer people will be reluctant to purchase a home in the coming months.
The National Association of Realtors reported today that existing home sales in June fell 5.1% from the previous month. The NAR reported a seasonally adjusted rate of 5.37 million units in June, compared to 5.66 million units in May. However, the numbers from June are 9.8% higher than the June 2009 figure of 4.89 million units.
“Although existing home sales have been falling the past few months, the housing market is in better shape, compared to last year,” Mr. Moshé said. “One reason for the decrease in home sales could be attributed to the backlog of paperwork from the homebuyers rushed to file their applications before the tax credit expired. Thanks to the federal government’s decision to extend the deadline to September 30 in order for lenders to catch up, we may see home sales rebound somewhat in the next couple of months. This is by no means an indication that the Real Estate market has reversed. We still anticipate home sales to be sluggish and prices should still come down.”
Mr. Moshé said the numbers for the fall season may be different as fewer people look to purchase a home. “Now that the federal tax credit has expired, and people are still worried about the economy, we will see a decrease in existing home sales. Home prices are remaining the same and interest rates are still low. If you are looking to buy a home, the time is now.”
Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 900 Agents on Long Island, Queens and Westchester. For more information, call (516) 575-7500, or visit www.crrli.com.
