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

Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the decrease in existing home sales during the month of October could be attributed to the more stringent requirements that took into effect that month for homebuyers and the recent foreclosure freeze that has kept many available homes off the market.

The National Association of Realtors recently reported that existing home sales in October fell 2.2% from the previous month. The NAR reported a seasonally adjusted rate of 4.43 million units in October, compared to the seasonally adjusted figure of 4.53 million units in September. This decline snaps a two-month streak of gains. Further, the October 2010 figures are off by 25.9% from the October 2009 figure of 5.98 million units. (Existing-home sales are completed transactions that include single-family homes, townhouses, condominiums and co-ops.)

“The fall of existing-home sales can be attributed to the new regulations, which are making it more difficult for people wanting to buy a home,” Mr. Moshé said. “Prospective homeowners are being asked to put down more money on a home and are required to have almost-perfect credit in order to qualify for a loan. Because of this volatile economy, it will be difficult for these borrowers — even those deemed as creditworthy — to meet these requirements.”

In addition, Mr. Moshé said, the recent foreclosure moratorium will negatively impact the housing market. Major lenders such as Bank of America, Ally Financial’s GMAC Mortgage and JPMorgan Chase & Co. suspended all foreclosure activity last month in the wake of the “robo-signer” scandal and have since reviewed the documents in question. These lenders have recently announced that they will resume foreclosures later this month, but at a more measured pace. Once they start up their foreclosure actions, they will begin to see an increase in their already-glutted inventory.

According to data from RealtyTrac, Inc., home repossessions dropped 9% in October from a month ago — the sharpest decline this year. “These lenders are in a bind. They cannot foreclose on any homes until they verify the accuracy of these documents; meanwhile, the inventory they have on the market is not being sold,” Mr. Moshé said. “Once the banks resume the foreclosure process, there will be even more houses on the market, which will probably become unsold and later drive down home prices.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 1,200 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 1,200 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.