What's Hot: 702,000: DC Sees Population Rise Again In 2024
After Some Unwelcome Data, Housing Recovery a Little Less Certain
✉️ Want to forward this article? Click here.
The Commerce Department recently published its monthly report on new home sales, which it pegged at an annualized rate of 429,000. While the figure is up 0.7 percent from July, it was shy of the 440,000 that analysts were expecting and so was greeted with disappointment. In other not-so-good news, the National Association of Realtors reported that sales of existing homes declined 2.7 percent from July to August, marking the end of a four-month rally in existing home sales.
While this disappointing data is obviously not welcome news, one month does not constitute a trend. It remains to be seen whether this is a hiccup in the housing recovery, or a sign of a more serious issue.
Some economists interpreted the slackening demand as a result of the expiration of the $8,000 first-time home buyer credit. While the credit doesn’t formally expire until November 30th, they argue that most people who wanted to take advantage of the credit already have, and so we are already seeing a dip as a result of the credit effectively coming to an end.
Another interpretation of the data is that while it is ostensibly bad news, the real estate industry might be secretly pleased. A loss of momentum in the housing recovery will make the Obama administration and lawmakers more receptive to extending and/or expanding the tax credit, which powerful groups like the NAR and National Association of Home Builders have been lobbying for aggressively.
For the latest analysis on whether the credit will be extended, see Kenneth Harney’s column at The Washington Post.
This article originally published at https://dc.urbanturf.com/articles/blog/after_some_unwelcome_data_housing_recovery_a_little_less_certain/1351.
Most Popular... This Week • Last 30 Days • Ever
If the home ultimately sells for around that list price, it would set a record as the... read »
The federal government could be shut down by the end of today, and that shutdown coul... read »
Right on the heels of a $29 million home along Foxhall Road going under contract to T... read »
New data shows that DC continues to make up for population losses experienced during ... read »
The 16,250 square-foot home along Foxhall Road NW owned by Fox News anchor Bret Baier... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro