Posted: 23 Mar 2011 04:39 AM PDT
Remember that housing recovery that was supposed to happen this spring? Well, according to the numbers released by the National Association of Realtors, it is not going to happen very soon.
The numbers reported for February, 2011 were rough to say the least. Experts were predicting a drop of 4 percent however we saw the number plummet 9.6 percent. This is the lowest number of homes sold in 9 years. The inventory of homes for sale jumped to 8.6 months.
Overall, the numbers are even rougher to the experts than they appear. The reason why, interest rates. The Federal government is doing everything it can to keep interest rates low including having the Federal Reserve buying up the debt they accumulate. This can only go on so long and then we will see a big bump of interest rates.
When that bump hits housing costs will skyrocket removing even more people from the marketplace.
This was the window the economists and the government was expecting housing to improve and help pick up the economy. It looks that that is not going to happen in the near future.
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9.6 Percent Drop in Home Sales Nationwide in February 2011
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