Home sales drop as stock prices fall

Large losses in the stock market have home buyers staying on the sidelines, a real estate official said.

“It’s getting tough out there, and Wall Street is not helping,” said Kathy Carroll, president of the Youngstown-Columbiana Association of Realtors.

Stock markets have had some large drops recently as the nation is mired in a credit crisis. The Dow Jones industrial average was down 710 points, or 6.9 percent, this afternoon. The Dow is down 27 percent for the year.

Some buyers don’t have stock investments and others don’t understand the markets, but they still don’t want to be buying a home as stock prices are falling, Carroll said.

“People who have never watched it before are watching it now,” she said.

Home sales last month were off 6 percent in Mahoning County and 18 percent in Trumbull County when compared with September 2007, the Realtors association reported Monday. Columbiana County, however, saw an 83 percent jump.

For more information, see Tuesday’s Vindicator or www.vindy.com.