Sales of new homes collapsed in May by 33%--shocking analysts

[JakeStarkey]

The home starts dropped by 1/3rd with the ending of the tax rebate for home sales.

The auto sales dropped by 1/3rd with the ending of the clunkers deal.

Hmmm. Then auto sales have rebounded. Let's see if this happens with the home starts.

That's the common sense approach, and let's never forget the primary problem for both, of course, was the failed reactionary right policies underneath the Bush administrations.

 

[B. Kidd]

The home starts dropped by 1/3rd with the ending of the tax rebate for home sales.

The auto sales dropped by 1/3rd with the ending of the clunkers deal.

Hmmm. Then auto sales have rebounded. Let's see if this happens with the home starts.

That's the common sense approach, and let's never forget the primary problem for both, of course, was the failed reactionary right policies underneath the Bush administrations.

Nice try Jake. Clinton had part and parcel contibution to the eventual home bubble debacle.
Another 'bump'.

 

[NYcarbineer]

Another one of your moron Presidents already tried that one--- Name Jimmy Carter--

You see once you take more money out of Americans pockets that they can spend on goods and services--suprisingly enough--even for you less than economic geniuse's--unemployment RISES.

You sound incredibly stupid. You called the tax credit for a homebuyer moronic micromanagement but you think the tax deduction for interest paid by a a homebuyer to be a good thing.

That is profoundly retarded.

Mortgage interest deductions--actually DO encourage those that are renting to buy a home--thereby--stimuluation of new home construction. This has been in place for decades.

Currently--the construction industry in this country is at 30% unemployment--greater than the Great Depression--meaning that there is no new home construction going on. Spec homes built by builders are now a thing of the past--only pre-sold homes will be built.

Now we do have experience with what Jimmy Carter did--actually by reducing the amount of what one could deduct from their morgage interest--resulting in a huge tax hike to Americans during another very bad recession.

This is much different that paying someone an "additional" 6k one time tax credit and it could not be more than evident.

The whole point of this thread was that housing sales slipped after the tax credit ended, wasn't it?

 

[JakeStarkey]

The home starts dropped by 1/3rd with the ending of the tax rebate for home sales.

The auto sales dropped by 1/3rd with the ending of the clunkers deal.

Hmmm. Then auto sales have rebounded. Let's see if this happens with the home starts.

That's the common sense approach, and let's never forget the primary problem for both, of course, was the failed reactionary right policies underneath the Bush administrations.

Nice try Jake. Clinton had part and parcel contibution to the eventual home bubble debacle.
Another 'bump'.

Are we forgetting the foolish thought that perhaps Clinton was dealing with a REPUBLICAN CONGRESS? Bump.

 

[JakeStarkey]

You sound incredibly stupid. You called the tax credit for a homebuyer moronic micromanagement but you think the tax deduction for interest paid by a a homebuyer to be a good thing.

That is profoundly retarded.

Mortgage interest deductions--actually DO encourage those that are renting to buy a home--thereby--stimuluation of new home construction. This has been in place for decades.

Currently--the construction industry in this country is at 30% unemployment--greater than the Great Depression--meaning that there is no new home construction going on. Spec homes built by builders are now a thing of the past--only pre-sold homes will be built.

Now we do have experience with what Jimmy Carter did--actually by reducing the amount of what one could deduct from their morgage interest--resulting in a huge tax hike to Americans during another very bad recession.

This is much different that paying someone an "additional" 6k one time tax credit and it could not be more than evident.

The whole point of this thread was that housing sales slipped after the tax credit ended, wasn't it?

Please, Oreo does not let his bias be confused by common sense analysis. But, yes, the tax credit was very helpful in moving the market at a time it would not have moved.

 

[uscitizen]

The home starts dropped by 1/3rd with the ending of the tax rebate for home sales.

The auto sales dropped by 1/3rd with the ending of the clunkers deal.

Hmmm. Then auto sales have rebounded. Let's see if this happens with the home starts.

That's the common sense approach, and let's never forget the primary problem for both, of course, was the failed reactionary right policies underneath the Bush administrations.

Nice try Jake. Clinton had part and parcel contibution to the eventual home bubble debacle.
Another 'bump'.

Are we forgetting the foolish thought that perhaps Clinton was dealing with a REPUBLICAN CONGRESS? Bump.

so was Bush for several years there.

 

[Soggy in NOLA]

How many houses are you going to sell with 40+ million unemployed and a stridently anti-business administration?

Who the hell did this surprise?

 

[uscitizen]

Business itself has been the most anti business effort in recent years.

Corporate bailouts are sure anti business.

 

[JimH52]

Only indicates that a double-dip 'great' recession is around the next corner. The levels of new home sales, with this latest stat on the same level as 1960, occurred when the population was fairly less than it is today.
Any analysts shocked by this should quit and be like G. Gordon Liddy, and hawk precious metals.
If the past performance of history is an accurate indicator, only a World War will re-shuffle this deck of economic malaise, and if anyones' left to prosper, they eventually will.
I hope not concerning World War, but think the train has already left the station.

I disagree. I think the mortgage program ended at the right time. The drastic dip was inevitable. But, within threee months, I believe you will see a significant increase in new home sales.

I work in the development market, and I am seeing a lot more plans for single family housing and multi-family units. People in Real Estate don't make moves like that unless they see something in the market. It is there. It will take time. But, it will be back.

 

[rightwinger]

Tax credit ended last month and this month sales are down?

Shocking

 

[uscitizen]

Only indicates that a double-dip 'great' recession is around the next corner. The levels of new home sales, with this latest stat on the same level as 1960, occurred when the population was fairly less than it is today.
Any analysts shocked by this should quit and be like G. Gordon Liddy, and hawk precious metals.
If the past performance of history is an accurate indicator, only a World War will re-shuffle this deck of economic malaise, and if anyones' left to prosper, they eventually will.
I hope not concerning World War, but think the train has already left the station.

I disagree. I think the mortgage program ended at the right time. The drastic dip was inevitable. But, within threee months, I believe you will see a significant increase in new home sales.

I work in the development market, and I am seeing a lot more plans for single family housing and multi-family units. People in Real Estate don't make moves like that unless they see something in the market. It is there. It will take time. But, it will be back.

Just not like it was before the fall. At least not like that for a looooong time.

 

[Richard-H]

Only indicates that a double-dip 'great' recession is around the next corner. The levels of new home sales, with this latest stat on the same level as 1960, occurred when the population was fairly less than it is today.
Any analysts shocked by this should quit and be like G. Gordon Liddy, and hawk precious metals.
If the past performance of history is an accurate indicator, only a World War will re-shuffle this deck of economic malaise, and if anyones' left to prosper, they eventually will.
I hope not concerning World War, but think the train has already left the station.

I disagree. I think the mortgage program ended at the right time. The drastic dip was inevitable. But, within threee months, I believe you will see a significant increase in new home sales.

I work in the development market, and I am seeing a lot more plans for single family housing and multi-family units. People in Real Estate don't make moves like that unless they see something in the market. It is there. It will take time. But, it will be back.

Just not like it was before the fall. At least not like that for a looooong time.

Well, considering that before the "fall", the real estate market was based on massive fraud, I'd think that yes, it will be a very long time before the market returns to the state that it was in beforehand.

It probably won't happen until just about everybody that's alive now has passed on and a whole new generation of mindless, greedy assholes who think that a free, unregulated market is the answer for everything comes to power.

 

[Toro]

WASHINGTON—Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market.

The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify.

"We fear that the appetite to buy a home has disappeared alongside the tax credit," Paul Dales, U.S. economist with Capital Economics," wrote in a note. "After all, unemployment remains high, job security is low and credit conditions are tight."

New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.

Analysts were startled by the depth of the sales drop.

New-home sales plunge 33 pct with tax credits gone - The Denver Post


As we see again--once those taxpayer hand-outs for cars and now homes stop--sales plummett.

Obama's flood the basement economic policies are a miserable failure. The ONLY thing this President has done is gotten us into a 13 TRILLION dollar deficit--with is arrogant attitude that he can micro-manage this diverse economy.

View attachment 10671


Now up to 13 TRILLION.

How's all that hopey and changey working for ya?

Sales of cars spiked with the cash for clunkers program, fell back, then hit new 52-week highs, ex the rebate.

I don't recall many conservatives complaining about the cash rebate checks sent to everyone by the Bush administration. This isn't much different, other than most of the cash rebate checks from the government went into savings whereas the home and car rebate programs were designed to induce spending, which is what you want during a recession.

Why are political people's views of tax cuts dependent upon which party gives them? That's hardly objective.

 

[oreo]

WASHINGTON—Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market.

The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify.

"We fear that the appetite to buy a home has disappeared alongside the tax credit," Paul Dales, U.S. economist with Capital Economics," wrote in a note. "After all, unemployment remains high, job security is low and credit conditions are tight."

New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.

Analysts were startled by the depth of the sales drop.

New-home sales plunge 33 pct with tax credits gone - The Denver Post


As we see again--once those taxpayer hand-outs for cars and now homes stop--sales plummett.

Obama's flood the basement economic policies are a miserable failure. The ONLY thing this President has done is gotten us into a 13 TRILLION dollar deficit--with is arrogant attitude that he can micro-manage this diverse economy.

View attachment 10671


Now up to 13 TRILLION.

How's all that hopey and changey working for ya?

Rightwinger and other LIBERALS--have been avoiding this---

 

[bigrebnc1775]

So the stimulus wasn't working?

It only worked in the public sector. It did not do the economy any good.

 

[bigrebnc1775]

WASHINGTON—Sales of new homes collapsed in May, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer receive government tax credits.

The bleak report from the Commerce Department is the first sign of how the end of federal tax credits could weigh on the nation's housing market.

The credits expired April 30. That's when a new-home buyer would have had to sign a contract to qualify.

"We fear that the appetite to buy a home has disappeared alongside the tax credit," Paul Dales, U.S. economist with Capital Economics," wrote in a note. "After all, unemployment remains high, job security is low and credit conditions are tight."

New-home sales in May fell from April to a seasonally adjusted annual sales pace of 300,000, the government said Wednesday. That was the slowest sales pace on records dating back to 1963. And it's the largest monthly drop on record. Sales have now sunk 78 percent from their peak in July 2005.

Analysts were startled by the depth of the sales drop.

New-home sales plunge 33 pct with tax credits gone - The Denver Post


As we see again--once those taxpayer hand-outs for cars and now homes stop--sales plummett.

Obama's flood the basement economic policies are a miserable failure. The ONLY thing this President has done is gotten us into a 13 TRILLION dollar deficit--with is arrogant attitude that he can micro-manage this diverse economy.

View attachment 10671


Now up to 13 TRILLION.

How's all that hopey and changey working for ya?

Rightwinger and other LIBERALS--have been avoiding this---

Rightwingers and OTHER liberals? You make it sound as if they both are the same.

 

[oreo]

You sound incredibly stupid. You called the tax credit for a homebuyer moronic micromanagement but you think the tax deduction for interest paid by a a homebuyer to be a good thing.

That is profoundly retarded.

Mortgage interest deductions--actually DO encourage those that are renting to buy a home--thereby--stimuluation of new home construction. This has been in place for decades.

Currently--the construction industry in this country is at 30% unemployment--greater than the Great Depression--meaning that there is no new home construction going on. Spec homes built by builders are now a thing of the past--only pre-sold homes will be built.

Now we do have experience with what Jimmy Carter did--actually by reducing the amount of what one could deduct from their morgage interest--resulting in a huge tax hike to Americans during another very bad recession.

This is much different that paying someone an "additional" 6k one time tax credit and it could not be more than evident.

The construction industry is running at 70% employment.

Not so bad considering they had overbuilt so much.

You're full of S...t. You have elected a President whose only "copied" intelligence goes back to the 1930's--FDR --when we actually NEEDED roads and bridges.--- What took thousands of men with shovels-- can today be done with a couple of heavy equipment operatrors--DUMB ASS. You bought this B.S--hook--line and sinker. That's the Freaking dumb ass you elected.

How's all that Hopey & Changey workin for ya"?

 

[oreo]

Shocking--isn't it--LOL

 

[JakeStarkey]

How's that thinky-changy thing going for you far right conloons . . . hmmm?

Not only you are not mainstream Americans, real mainstream recognize you conloons for the enemies of American that do represent.

 

[editec]

The housing industry will recover when the EMPLOYMENT picture begins to recover.

The prices of homes were out of line with incomes to begin with. (they STILL are, too)

Cheap money masked that basic flaw in the economy.

Cheap money actually exascerbated the rising prices of real esate AND other markets (like the stock and BOND markets)

The Dereivatives SWINDLE made it possible for all those sub prime mortgages to be made because the banks which made those foolish loans could peddle those hot potatoe NINJA loans to the bond buying public.

Trying to pin all that on Obama or Bush II is pretty damned ignorant, but then too partisans tend to be highly selective about what data they're using when they character assassinate their political enemies.