Tuesday, August 24, 2010

Plunging Home Sales Could Sink Recovery

A recent analysis by CNNMoney.com shows that a double dip in housing prices is coming. Existing home sales sank 27.2% in July, twice as much as analysts expected. This is the lowest level since 1995.

What does this mean for Newport Beach and Laguna Beach home sales? More pain - high end home values will fall faster and have more room to fall than the lower end of the market. A new owner of a high end home likely will hemorrhage money because of a decreasing home value, every month, month in and month out. Of course, you won't hear this from a real estate agent who is trying to sell you a house.

"Home sales were eye-wateringly weak in July," said economist Paul Dales of Capital Economics. "It is becoming abundantly clear that the housing market is undermining the already faltering wider economic recovery. With an increasingly inevitable double-dip in housing prices yet to come, things could get a lot worse."

It remains to be seen how the sale prospects of existing listings in such places as Crystal Cove will be impacted. Keep an eye on these listings:
5 Atlantis Cove
9 Atlantis Cove
52 Sidney Bay Drive
28 Tideline Bluff

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