Well, as promised in a previous post, the numbers for July are in. As you may recall, from June to July of 2010, the real estate market experienced a 30% drop in sales. For July the drop in sales was only 16% which is a little more than half of the 2010 decline. The average sales price are also better than last year by 2%. While the numbers for 2011 are less than stellar, they are better. This came in the middle of the US debt crisis and the uncertainty of the consequences of the nation’s first ever potential default.
Although we are in a better position than we were this time last year, we should not celebrate yet. This market continues to send us some mixed signals, as evidenced by the increased homes sales and the nearly 10% unemployment rate. Sometimes it just doesn’t make since.
What we will have to watch out for going forward are the affects of the US credit downgrade by the S&P. We have already seen FREDDIE MAC and FANNIE MAE also get downgraded as a result. All other programs which are dependent on US dollars for funding are expected to suffer the same fate. The one silver lining in all of this is that the interest rates went down when the news was announced. If more jobs are created and consumer confidence stays the same at best, we should maintain higher sales statistics until the new government “super committee” begins stirring the economic pot again.
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