June 2010 registered a rebound of sales for new homes. It went up by 23.6% from the lowest ever recorded sales in the month of May in year 2010. With a seasonal adjustment to the annual rate, the sales went up to 330,000 in the month of June. The sales figures for the month of May were at 267,000. Though the sales for June rebounded, it was down by 16.7% during the same period last year.
It was in 1963 when the Commerce Department of the country started tracking the home sales and according to the reports from the department, the sales figures of June were the second lowest to be registered ever since 1963. The summit position was captured by the month of May. However, the June sales overshot the expectations of the economists and analysts. The expectations were benched at 310,000 units. Still there are several factors, which when accounted for, show that the housing market has yet to go a long distance, before it hits the solid ground it is searching for in the swamps.
Home builder sentiments.
Volume of mortgage application.
Clearly, the mortgage application volumes are low, because the consumers are pessimistic and this is because of the acute unemployment. They are afraid to invest in new homes, because they are cowed by the thought that the property may attract depreciation in market value, because of the poor economic conditions.
The irony is that the home sales went up in March and April, but after the homebuyers tax credit ended in April, the sales fell once again and went down by 40% in May compared to March and April.
Strict practices for lending,
Increasing delinquency rates and foreclosures and
Slow labor market.
As foreclosures will continue to increase for some time, home buyers will continue to gain, as the lenders will reduce the prices of the properties to empty their huge inventory. So, if you are planning to get a preoccupied property, click on ForeclosureDataBank.com. We hold the latest news on foreclosures and the most updated list of foreclosed properties in different states all over the country.