Economic,recovery,threatened,p business, insurance Economic recovery threatened by plunging home sales.


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Economists believe that economic recovery is seriously threatened by the plunging home sales. Records show that the sale of homes dipped down to the record low levels in last 15 years and that further decline in the sale of homes is just awaiting the housing market. In July, 2010, the sale of the existing houses went down by 27.2%, which is twice the actually anticipation by the analysts. After this sinking, the house sales became stuck at 3.83 million units (annual rate, which is seasonally adjusted). This drop is a result of the end of homebuyers’ tax credits, which ended in April. It was due to this credit that a hike in sales was seen when buyers tried to sign up for homes before the deadline, because of the tax credit facilities that ended on April 30th. The data retrieved after two months show that houses sales dropped by 34% of what was registered in April. Some economists go to the extent, saying that the sale was down to a level where it can be easily referred to as eye-watering fall. Others say that the economic recovery is taking a hit due to the weak housing market and with a second round of plausible dip in the very close future, the situation will become even worse. The tragic fact is that the home sales are down for all kinds of homes, which includes condominiums, townhomes, co-ops and single-family homes. All have reached the lowest levels since 1995. Adding to the panic is the ever increasing inventory of lender repossessed homes because of foreclosures. In July, the inventory increased by 2.5%, which in concrete figures, means that the number of existing houses for sale went up to 3.98 million. This number will be sold out in 12.5 months with the current pace of home sales. This is a serious concern for the economic recovery. However, for the prospective homebuyers, this is a good news as they can now get hold of some good properties which are now lender repossessed at cheap prices, because the lenders want to get rid of their inventories and in an attempt to do so, they are actually selling off their possessions at discounted prices. ForeclosureDataBank.com serves the need of the would-be homeowners with the most updated listings of foreclosed properties all over the country. Join us and get the freshest news and deals on foreclosures.

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