U.S. Home Sales Hit a 4 Year Low

 According a to a news report in LA Times, U.S. Home Sales this June was the lowest in more than four years.  It was down by 11.4% compared to same month last year.

Most economists foresee that the housing market won’t make a turnaround anytime soon.  The bust in the sub-prime mortgage market and the increase in foreclosures are signs that the housing market is far from making any recovery. This was supported by a statement made by the head of the nation’s largest mortgage lender, Countrywide Financial who said that he did not expect a recovery until 2009.

Most buyers are remaining cautious which contributed to the decline in home sales.  Most of them are looking for some form of stability before they decide to buy a house.

However, in an interview with Mark Zandi, the chief economist of Moody’s Economy.com he reassured that the market fundamentals are ok.

"The economy is expanding.  We’re almost six years into an economic expansion.  And I think what’s driven the market in the last few days, couple weeks, is the relief that the economy is going to be able to digest the housing downturn and the mortgage-market mess without falling into recession.  I think there was a lot of concern about that.  There’s been a lot of stress. But I think people, investors are coming to the realization that this economy is resilient and it’s going to make its way through without unraveling."

Given the state of the U.S. housing market right now, would you consider buying a home?  In my opinion, if you’re financially comfortable then you can take the plunge and take advantage of the decline in house prices.  As Lawrence Yun, NAR senior economist had mentioned "…general buying conditions remain favorable for long-term home buyers."