The NAR reports that home sales fell 2.7% in the last month. However, people should not get overly alarmed because compared to last year we are still moving in the right direction. 31% of home sales in August were foreclosures and short sales. This may be a great boon for buyers for for owners it is discouraging because it drives down home values. NAR predicts that over the next 12 months we will see even more numbers of foreclosures and short sales.
It is also important to note that while sales fell so did the actual number of houses on the market. It was not a slight drop in inventory but a 10.8% fall.
So some people may be asking: "Where are the homes selling?" This past month the Northeast saw the least drop in sales with only a 2.2% change. In the West sales fell 2.7%. Sales in the South were down by 3.1%. The Midwest was hit the hardest with a decrease in sales of 6.6%. It is also important to note that in the Midwest the home values are down 10.6% from last year at this time.
So what does this mean for you as far as your real estate sales and purchases? Make sure you choose your are to buy in wisely. Bide your time and invest well. While there are no guarantees you can clearly see where the trends are taking things.
