The underperforming property market show different movements while a group of laid off workers run a different track.
The National Association of Realtors’ Pending Home Sales Index fell down 1.4 percent in February YoY. According to NAR’s chief economist, Lawrence Yun, “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.” On the other hand, sales of second homes slid by 30 percent in 2008 according to the NAR. The organization’s press release states, “NAR’s 2008 Investment and Vacation Home Buyers Survey shows vacation-home sales dropped 30.8 percent to 512,000 last year from 740,000 in 2007, while investment-home sales fell 17.2 percent to 1.12 million in 2008 from 1.35 million in 2007. Primary residence sales declined 13.2 percent to 3.77 million in 2008 from 4.34 million in 2007.”
It’s still a bad picture of the property market as investment homes take a sales plunge because of the recession. Second homes provide a good track of real estate investors’ activities since a fall in ownership means a cut in 25 percent in total market activity. With low demand for investment homes, it translates to weaker expenses, therefore hampering any boost in home building. This is what’s happening in the real estate industry with the effect clearly seen in its declining labor force. So what do real estate professionals do when they lose their jobs?
Watch this Associated Report video and we’ve heard that some of the event’s participants were real estate agents and brokers who were forced to quit by the recessionary economy.
Next time, may we suggest to Nick Goddard to include hurling fake foreclosure notices into the air instead of using telephones.