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Are New Homes Sales Surging, Flat or just doing what they should do! July 23, 2009

Posted by John Watch in News Feed.
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Homes of previously occupied housing increased 3.6% from May to June.  Are we surprised? Or just so affixed to our computer screens, blackberries and cell phones that we forget real estate is Seasonal! 

If home sales did not increase we would be floored, desperate and start to panic again.   Analysts and public records refer to the time in 2006 when 7.2 million housing units sold, but historically the number was around 5.5 million units.  We should be relieved that the market is following historical selling patterns.

Sales should be up in July, August and September; but what are we going to do when activity falls off for the seasonal 4th and 1st Quarter period?  The median sale price should be reversing itself and values should continue to stabilize.  But again, this is all within historical patterns for real estate.

Are we that desperate for a news reporter or an economist working for the National Association of Realtors take on the market?

There are fundamental issues that remain in the market that still have not been addressed by the government or major financial institutions, as reported in Housing In Crisis, $8,000 tax credit and Mortgage Assistance Program, there are alternatives that can restore stability to the markets that are not being addressed.

Do not be surprised in August to see Sales Activity grow 2.5% to 3%, August 2.0 to 2.5% and September barely over 1%.  That is real estate and that is what we need to report.

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