Washington, D.C. (WiredPRNews.com) — As of recently, there have been signs that the long slump in the U.S. housing market is going to worsen in the following summer and it may not get better for another year. The index of the pending home sales of NAR fell by 4.7% in the month of May which is the 3rd lowest data on the record books. Chief economist of the trade group, Lawrence Yun, said that the decline suggests that conditions are not going to get better.
With more unfavorable reports coming up about the real estate market, the economy is weakening, job losses are accelerating and economists are not yet ready to say that the worst phase is over. Jeffrey Lacker, the President of Federal Reserve Bank in Richmond, said that if the situation gets better by the end of the year, the process is going to be very slow. Senior economist of Wachovia Corp, Mark Vitner, said that the home sale numbers are going to be the lowest by late 2008 or early 2009, and any kind of recovery will be very weak until 2010. He also paid attention to the house market being glutted with foreclosed properties and unsold new houses. The high 30-year mortgage rate being above 6% makes things even poorer.
Pending home sales fell sinking most in the south and least in west. The Economic Outlook Group’s managing director, Bernard Baumohl, said that despite some unfavorable statistics, the worst has passed and the modest recovery process is likely to begin by next year. Homeowners need not get excited because he also said that median prices are going to show gains year after year though not more than 6% by 2009. By the measurement of the Realtors, nationwide prices of homes fell 6.3% in May and will continue to fall further in bigger cities.
Wired Real Estate Reporter- Wired is a great and Free Press Release Distribution medium