Tuesday, August 30, 2005

Home Resale Market Dips As New Homes Sales Soar

The expected downturn came in homes resale market as the flippers and speculative investors started putting up their properties on the market. The downturn doesn't as yet mean that the market is in for a crash. It only points to oversupply of resale homes.

July saw around 5,361 resale transactions, which is down from 6,139 in the same month a year ago. There was 13.8 percent decline in total homes sales from last year.

Real estate experts predicted this decline in re-sales as market was overheated with too many flippers trying to make a fast buck. The analysts also homes prices will continue to rise till buyers feel that the prices no longer justify the value they are getting from a home.

Meanwhile new homes sales continued to soar. The median price of a new home sold in July was $290,000, a rise of $51,043, or 21.4 percent. Excluding apartment conversions, the median price of newly constructed homes was $317,909.

posted by Diane @ 8:29 AM