Monday, March 23, 2009

Cheap prices 'lift US home sales'

by Lionel Creech


Sales rose last month as buyers are getting a bargain as mostly repossessed homes are being sold at very low prices. Overall sales grew by 5.1% and the average price per home dropped a total of 16% from last year. This drop is apparently the second largest fall on record at the National Association of Realtors. The bargain market has sparked renewed interest in entry-level, or first time, buyers. About half of the sales were made by first time buyers which is a promising sign for the industry which is struggling to find reasonable prices for homes. Surprisingly construction rose 22% in February for the first time in seven months, yet analysts are still not expecting great things for the rest of 2009. These 'distressed' homes are selling for 20% less than market value which means sellers are losing out on revenue. Also losing out are citizens who are struggling to find new living arrangements during the economic crunch.

No comments:

Post a Comment