Charles Rutenberg Realty Broker/Owner Joe Moshé Comments on the Rise in New Home Sales in June

Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the increase in new home sales in the month of June could be attributed to the number of closings that were done before June 30 so homebuyers could be eligible for the federal tax credit.

Today, the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) released estimates that sales of new single-family homes last month were at a seasonally adjusted rate of 330,000, which is 23.6 percent above the revised May rate of 267,000. However, year over year, it is 16.7 percent below the June 2009 estimate of 396,000.

“As expected, home sales in the month of June would increase over the previous month as lenders attempted to meet the June 30 deadline so homeowners could be eligible for their federal tax credit,” Mr. Moshé said. “However, during the last-minute rush of mortgage applications, lenders faced a backlog of paperwork. Fortunately, the government has extended the deadline to the end of September to allow lenders to catch up.”

At the end of June, there were an estimated 210,000 homes for sale, according to Commerce and HUD. “Despite all the talk on how bad the economy is, now is the perfect time to buy a home,” Mr. Moshé said. “Buying a home is a long-term investment and, when economic conditions improve, homeowners will see the value of their homes rise. It is better to purchase a home now rather than later.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 900 Agents on Long Island, Queens and Westchester. For more information, call (516) 575-7500, or visit www.crrli.com.