New Home Sales: A Stunning Slide »
Posted by: Alexia 8 months, 1 week agoA Commerce Dept. report released on Dec. 28 showed U.S. new-home sales plunged 9%, to a 0.647 million unit annual rate in November, from a downwardly revised 0.711 million in October (from 0.728 million previously). Market forecasters had expected a more modest decline to 0.715 million. Following downwardly revised numbers for August and September, new-home sales are stuck in a steep downtrend.
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walden38 months, 1 week ago
Gotta love that Republican economy. Their goal is to have three classes in America: "the haves and the have mores" and us the working stiffs tied to our non-secure soon to be outsourced jobs. They drool at the prospect of further weakening the social economic safety net. Republicans want Americans so desperate for jobs that we'll work shoveling radioactive waste for pennies.
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capecoralM8 months, 1 week ago
One way to view the doom and gloom article is to look at the data from another point of view. Even though the percentages show a decline from all time record highs, the sale of Existing-homes are likely to total 5.67 million this year according to NAR data; (The 5th highest on record.)
With inventory high it does not make sense to start a new home when there are bargains everywhere on existing new home inventory.
94% of mortgage holders are paying on time, in contrast to the MSM inflated reporting of the foreclosure situation.
"We're not really in a quote 'credit crunch.' I think what we are in is a 'confidence crunch,'" said Zell, founder of the Samuel Zell and Robert Lurie Real Estate Center at Wharton. "I would argue the excess liquidity that existed eight weeks ago still exists today. It has a different risk premium on it, but the actual amount of liquidity has not changed."
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rwrnae8 months, 1 week ago
Perhaps someday we can learn to build an economy that does not depend on "growth." The US was overpopulated at 150 million. Now we're over 300. Where does it stop? As for the outsourcing of jobs, BOTH political parties are responsible and have been for decades. The mayor of Salem was recently on TV gushing about the conversion of the old Boise Cascade mill site into a downtown water front commercial development. Meanwhile overseas, new paper mills, oil refineries and chemical plants are being built at a breakneck pace. The US is toast and will soon be owned by foreigners.
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NelsonR8 months, 1 week ago
This is only the beginning of the slide while Americans bankrolled their lifestyles with runaway home prices. Many have used their home as an ATMs and the piper is awaiting repayment. Wait how can they repay? Wages are stagnant, prices are skyrocketing and homes are in devaluation and will for another four years minimum. The government says inflation is low, ask any recipient of their retirement check if the cost of living index is correct. Unemployment is said to be strong by our government, another G*D D**N LIE. The government under Bush puts out the numbers and many illiterate in America believe this load of donkey doo.
WERE BROKE, we need more Republican wars and Democratic cowardly inaction. Pelosi and Reid are right up there with the Bush crowd, total moronic, cowardly, juvenile leadership. Yet America keeps them. Shows why we here in America deserve our fate.
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bill29368 months, 1 week ago
And the Democrats won't make any changes in that because remember that the more someone pays for a house, the higher the property taxes are on the house. The secret is don't buy what you can afford. Always remember that the US has the 'riches poor people' in the world. Our 'poor people' own items that the average working class person in Europe doesn't own. Note welfare kids in $100 sneakers.
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mesodude8 months, 1 week ago
"The secret is don't buy what you can afford."
--But your President is putting a multi-trillion dollar disaster in the middle east on a credit card while cutting taxes on the wealthiest 10% of Americans and Bushbots still think he's an economics wizard. This is very confusing... ;-(
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mesodude8 months, 1 week ago
I mostly agree with you but what do you propose the Democrats do when they have a slim majority, the President has veto power, and GOP recalcitrance makes it nearly impossible for them to enact much in the way of legislation that won't cause undue hardship to one group or another?
I blame the Democrats far less than I blame a braindead electorate that allowed Bush to be elected TWICE. The idea that anyone would dare to consider putting another Republican in the White House next year (after the spectacular disgrace and destruction Bush and the GOP have brought this country) is positively surreal to me. Every time I watch any politics on TV these days, I keep expecting Rod Serling to step out of the shadows from some corner in my house and tap me on the shoulders. ;-p
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NelsonR8 months, 1 week ago
Ron Paul for President and any Independent worth his salt. The Republicans and Democrats with their candidacy for change have shown they cannot be trusted. Throw most incumbents out of office and renew our government. If the next group decide to screw America again throw them out. Eventually politicians will get the message Americans have had enough.
By the way mesodude the Democrats could have stopped funding for this war and we both know it. Pelosi and Reid stabbed America in the back and they continue that role.
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HomeGManComment removed: User banned.
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bill29368 months, 1 week ago
The problem is and has always been the need for people to impress others. This was going on long before the present administration. A perfect example is the pricing on homes. The price is not set according to the actual value, but what someone is willing to pay. Face it sounds really impressive to tell someone you live in a 150K house than to tell someone you live in a 50K house. Now while the house may have only a value of 50K, people will buy (finance) it a 150K to impress people. So they end up with an overpriced house living well beyond their means because, it impresses people. I have seen these 150K houses and I would give over 50K for them. And no matter who is in power it won't stop. Because remember one other difference between a 50K house and a 150K house. The property taxes paid to the government. Note I bought an older house (built 1935) for 12K and sunk 15K in upgrades and mods and have one that is much better than the 50K priced at 150K houses in the area.
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NelsonR8 months, 1 week ago
Skeptic, at one time he could ask the 150k figure but not today. The banks and mortgage companies were caught with their pants down by giving out loans without any verifications involved. Should we bail them out again?
All we have to do is get more money from China or others then our other alternative, print money. Now we are bailing out some of those he failed to use common sense. Its all insane while America goes broke and feeds our upper crust with a larger bottom line.
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bill29368 months, 1 week ago
House paid for Zero mortage, now why would I want to sell? No need to sell. I kinda like a house that if you want to hang a picture, you just drive a nail and hang it, no stud finder needed. An attic that if you step between the beams you don't go through the ceiling. My house is made with this mystery material called WOOD. Not woodframe over sheetrock. But solid wood.
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mesodude8 months, 1 week ago
"The problem is and has always been the need for people to impress others."
LOL Yes. The sub prime mortgage crisis is a result of mass public vanity. I knew there was a reason this is happening under the current administration. People just weren't as interested in impressing others back when Clinton was in office, I suppose.
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KYRed8 months, 1 week ago
Here in tiny town where 70 percent of the population vote for democrats on average no matter what election, the local contractors have been building new homes in a frenzy for the last few years while employing cheap Mexican labor. I asked myself a few years ago, who is going to buy all these homes in tiny town while so many cheaper "used" homes exist? I assume 70 percent of the employers are also Democrats seeing how they are the most monied people here. Yeah, damn that Bush. It's his fault. He made the greedy contractors build more than they could sell.
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chevydog8 months, 1 week ago
In this country, we've long believed that home ownership in itself is good--hence the deductibility of mortgage interest on your tax return. There used to be all sorts of "rules of thumb" as to what one could afford, actually based somewhat on long term reality. We've spent awhile being encouraged by various entities to ignore these. Then reality reared its ugly head. Good times never last forever; but then neither do bad times. Has much more to do with human nature than any particular political persuasion.
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