A recent report may prove to be a downer for those who use construction equipment, as existing home sales dropped in January.
According to the National Association of Realtors, existing home sales fell at a seasonally adjusted annual rate of 7.2 percent in January when compared to levels in December. However, sales of existing homes were 11.5 percent higher than levels reported in January 2008.
Lawrence Yun, chief economist for the NAR, said that deals finished in January for new homes began in November and December. Some of these people only entered the market after the government's tax credit for first-time homebuyers was extended through the end of April.
"Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery," Yun said.
Sales of existing homes being down may not bode well for those trying to sell newly-constructed homes. In fact, a recent report from the government shows that sales of new homes took a tumble during the first month of the year.
During the month, sales of new homes fell at a seasonally adjusted annual rate of 11.2 percent.