NeWS to KnOW

According to the Associated Press, existing home sales fell to their lowest level in 15 years, dropping 27% in July. The report released by the National Association of Realtors was much worse than the industry expected. The reported figures highlight the possibility that the market is having trouble finding stability without the help of the federal government. The tax credit for first time homebuyers ended in April, thus ending the incentive program to get more buyers into the market.

The weaknesses shown in the housing market could undermine the overall economic recovery, according to some financial analysts. It is just another piece of bad economic news that could push us into a double dip recession. Others believe that existing home sales will level out this fall after the reaction to the tax credit ending is over. We will just have to wait and see what happens in the next few months!