Joe Moshe, Broker/Owner, Charles Rutenberg Realty, says the increase in new home sales during the month of October indicates there are signs of improvement, but the numbers show that it will be a long time before the Real Estate market truly recovers.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced today that sales of new single-family homes during the month of October were at a seasonally adjusted annual rate of 307,000. This is a 1.3% increase over the revised September rate of 303,000 and 8.9% higher than the October 2010 estimate of 282,000.
Mr. Moshe noted an improvement in the job market as the national unemployment rate fell to 9%, but sales and job numbers have not met economists' expectations. "Although more people have gone back to work and were able to make that big-ticket purchase, new home sales were less than half of what economists say is needed to sustain a healthy housing market," he said. "The home construction industry is what drives the economy, but if fewer people are purchasing a new house, then the industry starts to suffer and then the economy also suffers."
While new home sales were upward, home prices began to decline. In October, the median sales price was $212,000 - the lowest level of the year. "These prices are at record lows, but with the inventory of existing homes and the 'shadow inventory' of unsold homes that are not on the market, as well as the stringent lending requirements from the banks, the Real Estate market is still in a sorry state," Mr. Moshe said. "It will be a long time before the Real Estate market makes a full recovery and home sales resume to normal levels."
Charles Rutenberg Realty is one of the nation's fastest-growing Agencies with more than 1,300 Agents on Long Island, Queens, Westchester and Manhattan. For more information, call (516) 575-7500, or visit www.crrli.com.
###
About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation's fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens, Westchester and Manhattan. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients' financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.