Here in October we have seen mixed results in the area of housing as some reports have indicated that home starts increased in September and, in some areas, home sales also increased last month, but some areas of the nation saw decreases in existing home sales, which when taken as a whole paint a picture of a still unstable housing market that many feel will be a continued drain on our economy along with other factors like unemployment, until action is taken or economic and financial situations improve for consumers. Obviously, there has been what many feel to be a relatively low amount of activity in the housing market, particularly when we look at opportunities that are currently in place as rates on home loans and low home prices leave many of the mind that now is a good time for potential buyers to purchase a home.
However, many of these would-be homeowners are hesitant to purchase because of factors like the instability in home prices that many feel may still be an issue in the coming months, specifically when it comes to continued decreases that are predicted in home values, but there is also some uncertainty on the part of consumers as well. Potential homebuyers may be in a position where they would ideally like to purchase a home but some still have questions over their job, income, or the economy in general and want to avoid making a large purchase, like at home, during these times of questionable economic growth.
Furthermore, some homebuyers may simply be in a position where closing costs, origination fees, and other expenses that come with buying a home was simply too much for them to afford as some lenders may be requiring a higher down payment and, once again, may be charging higher fees which could eventually be a financial burden for some homebuyers and may turn some away from buying a home at the current time despite the fact that low prices and rates are available.
Yet, these reports that have shown that sales have been mixed and home starts are also seeing results that are not necessarily universal across the nation have in some cases shown that, even in areas where there may have been decreases seen, some housing markets are doing much better than last year and, continue to see improvements in some ways, despite the fact that many economists and officials would like to see much more activity. While banks are working with some homeowners to make short sale agreements, particularly when homeowners may face foreclosure and simply leave the home sitting empty, there are also continued arguments that housing prices and consumer confidence may be low simply as a result of these widespread foreclosures.
Again, there are some who feel that purchasing a home now is offering some of the most affordable options that homeowners have seen in quite some time, but with continued insecurity by potential buyers, high levels of unemployment, and some homebuyers who are concerned that prices on homes could drop further, we may still continue to see these low improvements in the area of housing, as it may take more economic stability and confidence in the housing and job market before greater leaps are seen in the areas of home building and home buying.