Sales by homeowners increased more than expected in July, as median prices fell 7% from July 2007. But supplies still rise to a record high, pushing prices even lower.
CNN Money reported this week that sales of existing homes rose more than expected in July, but prices continued to fall. Partly this is because of an increase in foreclosures. Sales volume is increasing because pricing is getting more aggressive, but these lower prices are causing overall sales numbers to be lower than last year.
So what does this mean to you? If you are selling your house, it means that your lower price may attract more attention from hungry buyers. You have plenty of competition, but there are people out there looking for a great deal. If you are looking to buy—this is a great time to make that investment, and there are even additional incentives:
resident Bush is responding to the struggling housing market. The President signed the Housing and Economic Recovery Act late last month. The bill includes a temporary tax credit of up to $7,500 for first-time home buyers who haven't purchased a home in three years. To qualify buyers must earn less than $75,000 - or $150,000 for a couple - after which point the tax credit begins to phase out.