Joe Moshe, Broker/Owner, Charles Rutenberg Realty, says the decline in the pending home sales index may have been the result of the stock market's performance, although there was a rise in consumer spending. He also said that, while consumers expressed more confidence in the economy, that same sentiment has yet to carry over into the Real Estate market, which is showing an overabundance of homes on the market, as well as the "shadow inventory" being held in the banks' possession.
The National Association of REALTORS reported today that the pending home sales index (PHSI) during the month of July fell by 1.3% to 89.7, compared to June's figure of 90.9. Despite the month-to-month drop, last month's index was 14.4% higher than the July 2010 figure of 78.4. (These figures do not reflect the number of closings.)
Many expressed concern over the stock market that month, which had its third consecutive month of declines. However, some were less fearful and flexed their spending power. According to the Commerce Department, consumer spending increased 0.5% after it was adjusted for inflation, meeting economists' expectations. Commerce also reported that durable goods purchases rose 4% in July
"The consumer spending numbers and durable goods sales help combat the fears that we are heading into another recession," Mr. Moshe said. "What is keeping the Real Estate market from making those same strides is the fact that there is a 'shadow inventory' of homes that are still waiting to be put on the market but cannot because of the vast number of homes still waiting to be sold."
Charles Rutenberg Realty is one of the nation's fastest-growing Agencies with more than 1,300 Agents on Long Island, Queens, Westchester, and the New York metro area. For more information, call (516) 575-7500, or visit www.crrli.com.
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About Charles Rutenberg Realty
Founded in 2006, Charles Rutenberg Realty of New York is one of the nation's fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens and Westchester. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients' financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.