Thursday, August 18, 2011

Home sales on pace to be the worst in 14 years

Home sales fell 3.5 percent last month to a seasonally adjusted annual rate of 4.67 million homes, the National Association of Realtors said today. That's far below the 6 million that economists say must be sold to sustain a healthy housing market.

Many people are reluctant to purchase a home two years after the recession officially ended. Sales are lagging behind last year's 4.91 million sold -- the weakest in 13 years.

Bigger down payments, tougher lending rules, high debt and a shortage of desirable starter homes have kept many would-be buyers away. Even people with good credit and enough money for a down payment are holding off because they are worried home prices will keep falling.

No comments:

Post a Comment