US New Home Sales Sink to Lowest Pace on Record

[CARLHAYDEN]

US New Home Sales Sink to Lowest Pace on Record

Published: Wednesday, 25 Aug 2010  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.

http://www.cnbc.com/id/38847828

[Beet]

This is bad, but remember, this market is unsupported by a tax credit for the first time in a long time. So a direct comparison with pre tax credit expiry sales rates is invalid.

[CARLHAYDEN]

This is bad, but remember, this market is unsupported by a tax credit for the first time in a long time. So a direct comparison with pre tax credit expiry sales rates is invalid.

If you follow the article you will see it not only compares with the period when the tax credit existed, but also with years prior to tax credit.

[○∙◄☻¥tπ[╪AV┼cVê└]

There are still neighborhoods around here that the average house sells for 7 digits. Oh well, maybe I should buy a couple of city blocks in Detroit.

[opebo]

Tax credits obviously do nothing.  Demand is created by government spending, not tax credits.

[CARLHAYDEN]

This is bad, but remember, this market is unsupported by a tax credit for the first time in a long time. So a direct comparison with pre tax credit expiry sales rates is invalid.

Had a little time, so here are some numers going back more than two decades:

Houses sold in July (Not seasonally adjusted) in thousands

July   2010   25
        2008   43
        2006   83
        2004   96
        2002   77
        2000   76
        1998   75
        1996   66
        1994   52
        1992   52
        1990   46
        1988   57

http://www.census.gov/const/soldreg.pdg      

[??????????]

The prices are reasonable but if you're trying to sell (like we were) you can't get any money out of your house.

[memphis]

Not surprising given how much capital is now controlled by a tiny fraction of Americans. How many homes did you expect Paris Hilton to buy? Maybe if you end the estate and capital gains taxes, she'll buy a few more.