Charles Rutenberg Realty Broker/Owner Joe Moshé Comments on the Decline in Existing Home Sales in July

Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the decrease in existing home sales during the month of July is a reflection of the expiration of the federal tax credit, which ended April 30. Despite these figures, Mr. Moshé says that prospective homebuyers should take advantage of the low prices and the historically low interest rates.

The National Association of Realtors recently reported that existing home sales in July fell 27.2% from the previous month. The NAR reported a seasonally adjusted rate of 3.83 million units in July, compared to the seasonally adjusted figure of 5.26 million units in June. This is also 25.5% lower than the July 2009 figure of 5.14 million units. (Existing-home sales are completed transactions that include single-family homes, townhouses, condominiums and co-ops.)

According to the NAR, existing-home sales are at its lowest levels since the organization launched its series in 1999 and single-family home sales — which accounts for most of the transactions — are at the lowest level since May 1995.

“Because there are no other financial incentives from the federal government for people to purchase a home, and the lack of confidence in the economy, many people feel this is not the time to buy,” Mr. Moshé said. “People might have recently lost their job or are unsure if they will still have a job in the next few weeks, so it’s no surprise that existing home sales last month were at record lows.”

However, mortgage rates once again hit record lows. According to Freddie Mac, the national average for a 30-year fixed rate mortgage fell in July to 4.56%, down from 4.74% in June. Last week, the 30-year fixed-rate was at 4.42%.

Here on Long Island, contracted median home prices were mixed. According to the Long Island Board of REALTORS, the average median price for a home that closed in Suffolk County was $341,500, compared to $349,000 in July 2009. Nassau County homes that closed had a median home price of $435,000, which is 6.1% higher than the same month last year. LIBOR also reported that the first seven months of this year saw a higher number of closings than the same time period last year. However, since the expiration of the tax credit, the number of transactions fell 17.3% to 2,386, compared to 2,886 in July 2009.

“Even though the federal tax credit is no longer in effect, those who are thinking to buy a home should do so now before rates go up,” Mr. Moshé said. “We are also seeing a drop in home prices in some parts of Long Island, so it would be wise for those who are currently able to buy a home to take advantage of those low prices. Remember that a home is a long-term investment, so when the economy improves, home prices will rise and so will the home values.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 900 Agents on Long Island, Queens and Westchester. For more information, call (516) 575-7500, or visit www.crrli.com.

About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation’s fastest-growing, most progressive Real Estate Agencies with over 900 Agents on Long Island, Queens and Westchester. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.

Hank Russell, Public Relations Director
PRMG
156 North Ocean Avenue
Patchogue, NY 11772
631-207-1057
hrussell@theprmg.com

This release was published on openPR.