US Home Sales In Decline

Existing home sales in over 80% of US states have fallen over the course of the second quarter, according to a report released by real estate analysts.

The figures released show a decline in the sale of existing homes across 41 states from the period April to June this year. At the same time, prices had fallen in one third of surveyed areas, painting a bleak picture of the US housing market.

The report released by the National Association of Realtors underlined the extent of the slowdown in housing, which has seen the market hit its lowest point in almost two decades.

The US housing market has long been associated with trouble for the Federal Reserve and the US economy in a wider context. With homes now a ‘buyers market’ thanks to widespread apprehension about investing and mortgage lending, house builders and realtors are particularly suffering as a result of the slowdown.

Furthermore, the troubled sub-prime lending market has continued to underline market fears about liquidity and mortgage borrowing, adding further weight to the widespread decline in existing home sales.

With growing foreclosures in the sbu-prime sector, many would-be homeowners are being forced to reconsider, turning to renting property as opposed to making the investment.

Florida was among the worst hit states in the slowdown, seeing a decrease of 41.3% in existing home sales over the year. The state of Nevada was also badly affected, with the downturn amounting to 37.5% on this time last year.

On top of the downturn in sales, the national average house price fell by one and a half percent over the period, currently standing at $223,800.

Of the largely downward trend only six states reported any kind of positive growth in their housing markets, of which Wyoming, Iowa and North Dakota saw the most growth.

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