The National Association of Realtors reports show on Tuesday stated that existing home sales are down for the month of October. The industry report shows that existing home sales dropped by 2.2 percent for the month of October 2010. The figures are anticipated because of the problems caused by processing of foreclosure and mortgages.
There is recently a 50-state analysis that is examining the mortgage foreclosure processes of the country’s biggest banks.
The report also mirrors the burden of soaring unemployment rate and tight credit.
National Association of Realtors also forecast that existing home sales for 2010 would be 4.8 million total sales, which could be the worst existing home sales stats since 1997.
Existing home sales for 2010 is 7 per cent below last year’s figures.
The annual figures for existing home sales was 4.43 million units in October, which is 26 percent off for the same period in 2009.
However, NAR forecast on home sales will be improving in the coming months. The figures are expected to rise in spring time next year, back to 5.0 million units.
While the residential real estate market is on constant decline, the country’s Gross Domestic Product continues to get better. Worries about another dip into recession are alleviated.
GDP for the 3rd quarter has been revised— +2.0 percent to +2.5 percent.
The figures also mirror the fact that the housing market can not recover on its own, without any incentives from the government. Existing home sales got better earlier this year because tax credits for homebuyers are offered by the government but it has expired on April.