Press release
Charles Rutenberg Realty Broker/Owner Joe Moshé Comments on the Decline in Existing Home Sales in February
Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the decline in existing home sales during the month of February could be attributed to the more stringent lending requirements and an increase in mortgage rates, despite lower prices and a growing inventory. He also said that first-time homebuyers are the key to a recovery as they purchase these houses at affordable prices.After seeing existing home sales outpace the figures from the previous 12 months in January, the National Association of REALTORS reported today that existing home sales in February fell by 9.6% from the previous month. The NAR reported a seasonally adjusted rate of 4.88 million units in February, compared to the upwardly revised figure of 5.40 million units in January. In addition, last month’s figure was 2.8% lower than the February 2010 figure of 5.02 million units. (Existing-home sales are completed transactions that include single-family homes, townhouses, condominiums and co-ops.)
According to the NAR, the national median existing-home price was $157,000, down from $158,800 the previous month. Distressed homes — which are sold at discounts of 10-15% relative to traditional homes — accounted for 39% of market share, which is up from 37% in January and 35% in February 2010. Meanwhile, the national average commitment rate for a 30-year fixed-rate mortgage in January was 4.99%, up from 4.76% in January, according to Freddie Mac.
The Commerce Department recently reported that construction of new homes fell in February to an annual rate of 479,000 units — a 22.5% decline compared to January’s upwardly revised figure of 618,000. It was the lowest start in 27 years. Meanwhile, building permits fell to a record low of 517,000 units in February from January’s revised figure 563,000. It was also 20% below the levels of February 2010.
“Despite the extension of the tax cuts, lower sales prices and signs that the economy is improving, many homeowners have been scared off by higher interest rates and stricter lending requirements that require larger down payments and higher credit scores,” Mr. Moshé said. “Home prices will continue to decline as the inventory increases. This may trigger another recession in which the bottom of the housing market will fall out.”
The only bright spot in these statistics was that the number of first-time homebuyers increased over the previous month. According to the NAR, 34% of existing homes were purchased by first-time homebuyers in February, up from 29% in January.
“First-time homebuyers will play a major role in the existing home sales market,” Mr. Moshé said. “They were able to purchase these homes at affordable prices because they made sure they had enough money for a down payment and their credit scores were in excellent shape. It is imperative that you know what your credit score, regardless of how much you can afford for a home. This is a critical factor which today’s lenders are looking at.”
Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 1,300 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 1,300 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.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Charles Rutenberg Realty Broker/Owner Joe Moshé Comments on the Decline in Existing Home Sales in February here
News-ID: 167680 • Views: …
More Releases for February
Springwell Clinic's Emsella Chair February Giveaway
SPRINGWELL Clinic, one of Marlow's leading health and beauty clinics, are giving away two free courses of Emsella Chair treatments in February, worth £1500.
This month, Springwell Clinic are giving away two free courses of Esmella Chair treatments, a groundbreaking technology that aims to dramatically improve a patient's pelvic floor muscles, to address issues such as:
Incontinence
Intimate discomfort
Sexual dysfunction in both men and women
The Emsella Chair is a non-invasive…
Women Entrepreneurs Boot Camp – February 12, 2011
NO THEORY, PHILOSOPHY OR FLUFF!
PHOENIX –November 29th, 2010 – Where can a women business owner find powerful, world-class insights and cutting edge strategies? At the seventh annual Women Entrepreneurs’ Small Business Boot Camp, where else?
“The full day conference includes two keynote presentations, nine workshops and 50 exhibitors, all providing practical tips and ammunition to fire-up your business,” describes Susan Ratliff, the founder of the state-wide event and…
BBB Consumer Alerts for February 2009
BBB Warns of Garner-based Web Retailer
Online Weight-Loss Company Highlighted in February Consumer Alerts
RALEIGH, N.C. (February 19, 2009) - The Better Business Bureau (BBB) of Eastern North Carolina (www.bbb.org) warns consumers to be cautious when dealing with companies offering free trials, especially when a credit or debit card is used to cover shipping and handling costs. Complaints are being filed regarding the deceptive practices of an online company with a post…
Landrush of asia-domains begins February 20
The Sunrise Period of asia-domains has closed at 2008 January 31. Individual companies and the general public will soon be eligible to register for available asia-domains when the Landrush phase kicks off on February 20, 2008. Landrush concludes on March 12, with Go Live scheduled for March 26, 2008.
During the Landrush phase anyone around the world can apply for any available asia-domains, representing a golden opportunity for individuals looking to…
Analytiqa: Logistics Bulletin: Friday 23rd February
This week\'s Logistics Bulletin takes global expansion as its theme. In the last week, Schneider National has received the go-ahead for operations in China, Thiel Logistik is expanding its presence in South America, DPWN has announced multi million dollar investments in the Middle East and major logistics hubs are to be established in Russia.
Elsewhere, computer manufacturer Dell has established a new Global operations organisation, whilst retailer Decathlon is expanding…
Analytiqa: Logistics Bulletin: Friday 16th February
This week's Logistics Bulletin reports on yet more M&A developments. In the US, EGL has revealed that it has authorised its financial advisor to solicit interest from third parties for the sale of the Company. Elsewhere, Palletways Europe, Europe's largest and fastest growing pallet freight network, has acquired the Italian operation it licensed out in 2002 and ProLogis has acquired the industrial development business of Parkridge, a leading European developer…