The Real Estate Market Gets Weaker

Author:	Lucas Jones
Source:	Homes Discovered
Date:	August 23, 2006

Home sales in July dropped more than anticipated and is the slowest it has been in a couple years.  There is also the largest supply of homes for sale on the market in more than a decade.  This large amount of homes has iced the rediculous home price gains that buyers and investors were seeing their properties worth only a year ago.  Weak home value gains are not likely to pick up anytime soon in East Peoria and Creve Coeur, which is great for home buyers in the Peoria area.  In all likelyhood, this will lead to an increase of buyers in the marketplace and eventually level out. New housing starts and building permits have also slowed dramatically in the Peoria area.  Many builders are puting new projects oh hold for the time being until things get more stabilized and they can figure if the projects are sustainable.  I know I have seen some large projects near my home in Phoenix stalled for this very reason.  This slowdown in East Peoria, and beyond, is alarming because new home building has become a significant part of our economy.  Even the hot markets of the west have slowed down rapidly lately making it the perfect time to buy real estate.  The reason for such a glut of homes on the market is because during the frenzy of 2005 builders overproduced.  Now those same builders are feeling the effects.

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