Home Sales Plunge
National News
by
Leanne Gregg
last edited on
Monday, January 25, 2010
Home re-sales fell close to 17 percent from November to December, according to new numbers from the National Association of Realtors. That's far more than economists had predicted.
Sales had climbed steadily since August, with a first time home buyers tax credit boosting the market. The credit was expanded and extended until April. Questions remain about sustaining a recovery after the credits expire.
"You can't escape the fundamentals of a larger economy and it is all about jobs," says former Secretary of Housing and Urban Development Henry Cisneros.
Unemployment is high and banks are making it tough to gets loans. Last year first time buyers were the main driver of the housing market, but their presence is on the decline.
Still, the realtors' group says there are positive signs the market is stabilizing and that re-sales will pick up in the spring. Total sales for 2009 are up from a year ago and so are prices.
Some even believe the worst is over, but caution a housing recovery will depend on whether the economy starts adding jobs.