US New Home Sales Sink To Lowest Pace On Record

Discussion in 'Economy' started by AquaAthena, Aug 25, 2010.

  1. AquaAthena
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    AquaAthena INTJ/ INFJ

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    Would you be in the market for a new home, if you qualified for a loan?

    Wednesday, 25 Aug 2010 10:07 AM ET

    By: Reuters

    New U.S. single-family home sales unexpectedly fell in July to set their slowest pace on record while prices were the lowest in more than 6-1/2 years, government data showed on Wednesday.


    The Commerce Department said sales dropped 12.4 percent to a 276,000 unit annual rate, the lowest since the series started in 1963, from a downwardly revised 315,000 units in June.

    Analysts polled by Reuters had forecast new home sales unchanged at a 330,000 unit pace last month.

    "What we are seeing is the downside of government intervention. It had fanned expectations of a market bottom when in fact, it created a false bottom," said Tom Porcelli, a senior economist at RBC Capital Markets in New York. "We expect home sales to stay at this remarkably low range with remarkably high unemployment. There is also little demand for lending."

    News Headlines
     
  2. uscitizen
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    uscitizen Senior Member

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    Damn realator lied to me a while back. Said the market had hit bottem trying to get me to buy some investment property...
    She was cute though ;)
     
  3. Oddball
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    Oddball BANNED Supporting Member

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    How'z that "recovery summer" thing workin' out for y'all?
     
  4. martybegan
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    martybegan Gold Member

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    The market will continue to drop until people can afford houses again. This has less to do with loss of jobs than the fact that houses nowadays can be a factor of 5 to 10 TIMES your annual income. The cheapest houses in NYC are like 300k. In 81 my parents bought a house in queens for 43k, and my families income was like 40-50k.

    The level of increase we have seen does not compute.
     
  5. uscitizen
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    uscitizen Senior Member

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    Yep House prices in many areas are still too high. More downward adjustment will be needed.
    Esp if the job market does not pick up.

    Prices in some areas were just plain rediculous now they are just too high.

    I expect home sales in most areas to stay really low till at least next spring.
    If I am still around I will give another outlook then.
     
    Last edited: Aug 25, 2010
  6. eagleseven
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    eagleseven Quod Erat Demonstrandum

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    Come to Cleveland...where you can buy a house for $10k.

    Though you'd have to install bullet-proof windows...
     
  7. william the wie
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    william the wie Gold Member

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    There is truth to what you say. Please note that even though you are uncertain of income 86-106% of annual income with neither the run-up in prices nor the oversupply of 1994-08 is a very low price even with the relatively small preceding NYC bubble your parents gamed. With declining real incomes, higher unemployment and greater oversupply a housing bottom of less than 30K(constant dollars) for the low end is highly probable before the smoke clears.
     
  8. loosecannon
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    loosecannon Senior Member

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    So is the OP, nice ass.

    But really......is this news at all? A stimulus measure expired and now RE needs to find a real bottom.

    As boring as mud drying.
     

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