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Property Brokers Suffer Along With Housing Market As Sales Decline

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By : John Cutts    99 or more times read
Property brokers are suffering along with the U.S. housing market as July data showed sale activities for previously owned dwellings declining to their lowest levels in 15 years. The decline is being seen by most analysts as a sign that the economic recovery of the country is currently on a standstill.

The recent housing sales statistics issued by the National Association of Realtors led to some economists declaring that the occurrence of a double dip recession is more likely now than it was half a year ago. However, most analysts are still leaning towards an economic recovery, albeit a slow one.

Based on data released by the NAR, sales of existing homes declined by 27.2% in July compared with June and recorded a 12-month total of 3.83 million, the lowest number of units since May of 1995. Most real estate analysts have stated that the latest sales report demonstrates the market's volatility. The situation was made worse right after the tax credit deadline closed, they further added. Analysts also stated that the data showed that housing demand has deteriorated further in the past few months.

Meanwhile, it is not only home sellers who are suffering from declining sales but also property brokers who rely on such sales to earn their commissions. Most real estate agents believe that the country will not encounter a second recession, but they do agree with the general opinion that any recovery within the housing market and for the economy in general will be slow.

Along with poor home sales records for July, economists are also paying attention to the impact of unemployment on the economy. According to them, more than any economic factor, unemployment will have the biggest say when it comes to the issue of whether the country will achieve a sustainable economic recovery in the coming months.

With all significant data showing declines, the government is also expected to report a drop in the gross domestic product for the second quarter to an annual level of 1.4%. Unemployment, housing market statistics and even activities by property brokers are all expected to record declines in the coming months just like the nation's gross domestic product.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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