Overall sales of U.S. single-family homes drastically fell in the month of October after the recent strong gains, but still the USA housing market stays mostly supported by lower mortgage rates. A statement released by Commerce Department on Tuesday confirmed that the new sales have dropped 0.7% to a seasonally adjusted annual rate of 733,000 units in the previous month, mostly due to the low activities in the South and Northeast regions. As per Hunter Coates III, one of the most renowned real estate specialists in USA, ”It must be noticed that September’s sales pace have been revised to 738,000 units, which can be deemed as highest in July 2007, as reported earlier in 701,000 units. Hunter Coates III also quotes a forecast of new home sales, which will further account to more than 11.3% of total housing market sales, would then be increasing by 1.1% to a pace of 709,000 units in October. Factors which are impacting the sales of new homes
Volatile markets As per Hunter Coates, the volatile market situation is pushing people to stay away from their investments in the real estate markets and this is why they are hesitant to make some further investments. This has further created a confusing situation in the whole market but this still isn’t going to stay for long. Low demand Just like the volatile markets, Hunter Coates thinks that the low demand in the US real estate markets is impacting the same big time. People are simply short of their savings and due to the upcoming festive season, they don’t really want to invest in the real estate sector. Hunter Coates also says that the current situation can be improved if the government can bring on some tempting schemes to lure the investors. Increasing mortgage rates Hunter Coates further says that the largely increasing mortgage rates have also been one of the biggest reasons for this dip in real estate investment. The market is in fear of another recession soon and thus doesn’t want to take any further risks. People, on the other side, have pulled their hands out of the same investment process.
2 Comments
Smith
1/1/2020 08:45:30 pm
Truly agreed with what Charles Hunter Coates III has quoted here. USA is witnessing another recession in making and we really need to do something real quick in the same regards.
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Dak Prescott
2/7/2020 03:21:19 am
Hunter coates has placed true picture of the US economy and the government must look towards it with great concern and right decision making.
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AuthorCharles Hunter Coates III comes as one of the most recognized names in the Real estate industries over the past 10 years now. ArchivesCategories |