New Houses and REO Property Homes Lose Steam in New Jersey- By: John Cutts
Sales figures for new and existing residential properties, including REO property homes, have declined in most areas of the U.S. in October 2010 when compared with year-ago levels. In New Jersey, the drop was considerable and marked the sixth month in a row that home sales have declined by a large margin when compared with 2009 figures.
A big percentage of new houses and foreclosure homes in Freehold, NJ and in other major areas of the state have remained unsold. For October, home sales were estimated to have declined by 30% compared with the same 2009 period. October marks the sixth month in a row that the state has been posting sales declines of over 20%.
Compared with 2009 levels, the current year sees sales of New Jersey foreclosure homes and new houses declining between 23 to 31% for the past six months leading to October. According to housing industry experts, the decline is caused by the high unemployment rate of the region and the end to the federal government's tax credit initiative. In addition, analysts reported that New Jersey has been lagging in terms of job creation when compared with national averages.
Nationwide, annualized sales of REO property homes, foreclosed residential properties and new single family dwellings have dropped to 283,000. Data from the U.S. Department of Housing and Urban Development and the Census Bureau for October 2010 showed that total sales for the month represented an 8.1% decline when compared with the total home sales of 308,000 recorded in September 2010.
The number of people who search for foreclosure homes and new dwellings also declined considerably when compared with October 2009 when around 396,000 residential properties were purchased. In terms of year-by-year comparison, the decline for the month in focus is 28.5%. Prices of residential properties sold in October 2010 have also declined when compared with year-ago levels, according to government housing data.
Overall, the median price of new residences sold during the month of October was pegged at $194,900. In terms of average price, the figure was $248,200. According to housing market analysts, sales and price figures showed that majority of Americans are not interested in buying new dwellings or existing houses like REO property homes right now.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.