March through August are typically the peak buying months in the United States.
But this year, Americans purchased fewer new homes than at any point in history since the records began to be maintained. And the sales of previously occupied homes were not much better. Combined, total sales this spring and summer were the weakest on record dating back to 1963.
Those figures highlight just how poorly the housing market is currently doing, and suggests that a full housing recovery is still years away.
Not even historically low home prices coupled with historically low mortgage rates are enticing people to purchase a home. Even in a buyer’s market, no one is buying.
Indeed, the economy is barely growing and national unemployment rate continues to remain extremely high. As such, many people see a home purchase has too big of a risk.
Others simply can’t afford the 20% down payment that many lenders are requiring, or simply don’t want to deal with the hassle of the extensive paperwork that lenders today also require.
Many experts do not expect sales and prices to make a healthy recovery until at least 2015.
In a healthy six-month buying season, about 400,000 new homes would sell. However, this year approximately 168,000 new homes were sold from March through August. And that is less than the approximately 180,000 that were sold for that same period last year.
Our firm is prepared to assist you in navigating the difficult real estate climate that currently exists here in South Florida. Whether you are buying or selling a home, or if you are facing a foreclosure, or short sale, please call our office to discuss your potential options.