Home Sales Up 7.7% In August

But why were they up? Because of an increase in foreclosures, which will put downward pressure on home prices, leading more homeowners underwater and more foreclosures and the vicious cycle deepens.

Lower home prices and lower mortgage interest rates also propelled this increase of home sales.

Over the past five years, home sales have declined for four of them.

The LAT says:

Homes at risk of foreclosure made up 31 percent of sales. That’s up from 29 percent in July. Many are being bought by investors.

At the same time, activity among first-time buyers, who are critical to reviving the housing market, didn’t budge. First-time buyers made up only 32 percent of sales, matching the July level. They normally make up 50 percent of home sales in healthy markets.

Many people are reluctant to purchase a home more than two years after the recession officially ended. Some can’t qualify for loans or meet higher down payment requirements. Even those with good credit and stable jobs are holding off because they fear that home prices will keep falling. Home sales are also being hurt by a steep decline in first-time buyers

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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