Business Update: Foreclosures rise, sales down

Discussion in 'Growing and Managing a Business' started by irahat, Oct 29, 2009.

  1. irahat

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    Oct 7, 2009
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    Home foreclosures hit a new record in the third quarter as the foreclosure wave shifted to different parts of the country, according to data from tracking company RealtyTrac. Rising unemployment is cause for shifting defaults, but mortgages reset at higher rates is also a major factor.

    Sales of new homes fell in September in the first monthly drop since March. But there are still some bright spots. According to the Commerce Department the average sales price was up and the number of homes available for sale fell to its smallest in 27-years.

    Adding further confusion to the state of the real estate market - mortgage applications tumbled for the third straight week as demand dries up ahead of the anticipated expiration of the $8,000 home-buyers tax credit, which may be extended.

    But not all the economic news is bad. Orders for long-lasting items, known as durable goods, rose a full percent in September, suggesting an economic recovery may be gaining traction.

    And oil prices are heading lower after weekly supply data dashed hopes of a rebound in demand.

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