Existing Home Sales Decrease to Lowest Level in Two Years

While it’s true that Florida home mortgage applications are increasing, it’s also true that sales of existing homes around the country are decreasing.

According to a Reuters poll and National Association of Realtors data, this figure is actually at its lowest level in two years, as sales fell to an annualized rate of 6.18 million in August, ddown from 6.33 million in July. Why doesn’t the local market reflect that? Because Florida mortgage loans typically remain sought after due to the appealing surroundings in the state.

If sales are in line with expectations, this would mark the lowest rate since 6.08 million homes were sold in January 2004, according to the NAR.

Diminishing affordability, with wages relatively constant after a large jump in home prices, continues to be the main culprit for the slowdown, economists say.

Fortunately, steps appear to be in action in order to solve the affordability issue. Even Shaquille O’Neal is getting involved. Also, the Tampa Bay housing market is attempting to provide lower-income buyers with an easier chance for home ownership.