Home sales fell 16.7% last month, its largest decline in about 4 decades as the effects of the first-time home buyer tax credit faded. National Association of Realtors data suggest that first-time home buyers made up the majority of home sales in the early part of 2009, compared with just 43% in December.
Regional sales declines were greatest in the Midwest at 26% and least in the South at 16%. Both unemployment and foreclosure rates help to explain the differences in regional home sales figures.
The good news is that December 2009 sales and prices were up 15% and 1.5% respectively over December 2008. However, inventory was also down during the same period, lessening the legitimacy of year over year sales and price increase.
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