More Bad Housing News, New Home Sales Drop to Lowest Pace on Record

Posted on August 25, 2010


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From the Associated Press via  Breitbart:

WASHINGTON (AP) – Sales of new homes dropped sharply last month to the slowest pace on record, the latest sign that the economic recovery is fading.

The Commerce Department says new home sales fell 12.4 percent in July from a month earlier to a seasonally adjusted annual sales pace of 276,600. That was the slowest pace on records dating back to 1963. (emphasis mine)

Economists surveyed by Thomson Reuters had expected a pace of 330,000.

June’s sales figures were revised downward to an annual pace of 315,000. May’s figures were revised upward and are now the second-slowest pace on record.

The median sales price in July was $204,000. That was down 4.8 percent from a year earlier and down 6 percent from June.

 Now that the tax credit for first time home buyers is gone, so are the buyers.  Which seems to indicate that the tax credit had been keeping housing numbers artificially high, even though they still weren’t that great.  With the tax credit gone, we’re getting another view of how bad the economy really is at present.  There are no jobs.  No jobs means no money in people’s pockets.  No money in people’s pockets mean they aren’t going to be buying houses (either new or used).

Recovery summer?  Not so much.

Gary Varvel at Townhall.com sums it up:

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Posted in: Economy