* July Home Sales — The Sky Is Not Falling!
If you have followed the housing stats we post here on Bull City Real Estate, you know that we have been predicting a sharp decline in the sales figures for July since at least May, two month prior. Also, we identified the cause back then — July sales were being pushed into may and June to take advantage of the Homebuyer Tax Credit. It’s almost exactly like payday lending where you get a little now, but pay for it with interest on payday.
Apparently media outlets do not read this humble blog, because those July numbers, expected though they were, were clearly a sign that the sky was falling. Take a look at these articles for example;
- US Existing Home Sales Nose-dive in July — Triangle Business Journal
- Home Sales Collapse in the Triangle — News & Observer
- Triangle Home Sales Plummet In July, But Prices Rise — Triangle Business Journal
Plummet? Collapse? Yes, the decline in July numbers was large – over a third in some places. It was, however, completely predictable and expected. Despite what the media is telling you, it is not a crisis. Housing sales were really slow in July, they will probably be slow in August, but we should see some sort of equilibrium going forward from there. We may not like the level it will be at then, but at least it will be level [assuming the Feds don't go messing around with the housing market again to buy votes].
Don’t take my word for it — I have a second opinion. from the former mayor, no less
Tags: housing stats
