Closings on existing homes, which usually take place a month or two after a contract is signed, decreased 7.1 percent to a three-month low 5.08 million annual rate after a 5.47 million pace in January, the National Association of Realtors said Monday. Sales were weaker than the most pessimistic forecast in a Bloomberg survey of economists.
Faster growth in residential real estate is being hampered by a limited selection of available properties that has led to higher offering prices. While mortgage rates are attractive, affordability remains an issue for potential first-time and lower-income buyers whose participation would help broaden the market’s improvement.
“This number seems to suggest the trend may be a little weaker than we thought,” said David Sloan, senior economist at 4cast Inc. in New York. “Supply is fairly limited, so that is a restraint on sales.”
The Administration’s response to the popped real estate bubble was to blow the bubble back up, and now younger buyers are getting priced out of the market.Unexpectedly.
Owning a home does not make you a success, it is a sign of success.
Subsidizing home ownership or otherwise making those with poor credit able to attain a home loan is going to do nothing except create another housing bubble.