Monday, Jul 25, 2016
One of America's Great Newspapers ~ Toledo, Ohio

Real Estate

U.S. home sales weakest in 14 years

Market down for 3rd straight month with fewer first-time buyers

home-sales

Fewer people bought previously occupied homes in June, a grim sign that the worst of the housing crisis might not be over.

ASSOCIATED PRESS Enlarge

WASHINGTON -- People are buying homes at the weakest pace in 14 years.

Sales of previously occupied homes fell in June for a third straight month to a seasonally adjusted annual rate of 4.77 million, the National Association of Realtors said Wednesday.

This year's pace is lagging behind the 4.91 million homes sold last year -- the fewest since 1997. In a healthy economy, people buy roughly 6 million homes per year.

Fewer first-time homebuyers are entering the market. Many can't obtain a loan or meet larger down payment requirements.

Another problem is that a growing number of contracts are being canceled before sales are finalized, many because of lower appraisals that are scuttling loans. And the slowdown in hiring is making people think twice about taking on extra debt.

First-time homebuyers, who are critical to a strong and stable housing markets, have shrunk to 31 percent of sales. That's the fewest since January, 2010. Normally, first-time buyers make up about half of all home sales. And their purchases of low and moderately priced homes allow sellers to move up to pricier homes.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…