Sales of New U.S. Homes Dropped to Lowest on Record

Sales of New U.S. Homes Dropped to Lowest on Record

Sales of new homes in the U.S. unexpectedly fell in February to a record low as blizzards, unemployment and foreclosures depressed the market.

Purchases decreased 2.2 percent to an annual pace of 308.000, figures from the Commerce Department showed today in Washington. The median sales price climbed by the most in more than two years.

The new-home market is vying with foreclosure-induced declines in prices for existing homes in an economy where unemployment is forecast to average 9.6 percent this year, close to a 26-year high. Treasury Secretary Timothy F. Geithner yesterday said it would take a “long time” to repair the housing market as the administration takes steps to overhaul real-estate financing and regulation.

“Americans remain downbeat on the housing market,” said David Semmens, an economist at Standard Chartered Bank in New York, who forecast a 300,000 sales pace. “We expect the continuation of poor sales to lead to a resumption of downward price pressure.”

Sales were projected to climb to a 315,000 annual pace, according to the median estimate in a Bloomberg survey of 78 economists. Forecasts ranged from 275,000 to 343,000. The Commerce Department revised data to show a January sales pace of 315,000, up from the previously estimated 309,000. Records go back to 1963.


Bloomberg

Well I think that this speaks volumes. Although we are in a "recovery", it is still not a recovery until things like this turn around. New home sales are very important to our economy. Builders and contractors are just two key areas that require new home sales to continue to remain in business. The construction industry employs alot of people carpenters, painters, electricians, plumbers, and many more. I am failing to see the "recovery" from where I stand. How about you?

Edit to say I hope that this is the proper forum for this. I figured it was an extension of the global meltdown. If it is not Mods please move to proper forum.

[edit on 3/24/2010 by SpaDe_]

Now That Obama has shoved his Healthcare down our collective throats, He well have more time for job summits. This well of course be after Captain Trade, and Immigration
Reform. or Golf.... Then Jobs, He is all over it, then. Then Housing... Wait does a Fema camp count as housing?

Originally posted by Target Earth
Then Housing... Wait does a Fema camp count as housing?

Sadly I think in a sick and twisted way, yeah it could be counted as "temporary" housing. I don't think that we will see any new "housing" bills or "jobs" bills coming down the pipe for awhile (if at all). Obama just scored a big win, and he is going to bask in the glory for a moment then move on to some easier tasks.

reply to post by SpaDe_


Why does every damn economic piece have this in it?

Sales of new homes in the U.S. unexpectedly fell in February to a record low as blizzards, unemployment and foreclosures depressed the market.

Everyone. Unemployment unexpectedly went up again this month. Bank closings unexpectedly went up this month. Business closings and layoffs unexpectedly went up this month.


My God, if the style of writing was anymore blatantly propagandist, it would have Propaganda Release at the top of the release.

Sorry, had to rant a little.

reply to post by endisnighe


I agree with you 100%. My dad used to tell me "wish in one hand and s**t in the other and see which one fills up first". The problem is these people are wishing in both hands, and when neither fills up they are "unexpectedly" surprised that they didn't get what they wished for. This whole thing is just wishful thinking in my book, without something solid to go from.

Jobs are more important than anything. Housing isn't going to go up until people start getting their jobs back. What is going to cause people to get their jobs back? NOTHING! WallStreet is approaching pre recession levels. Corporations really don't give a crap about hiring as long as share holders are happy and stock prices are going up. The rich surely don't care as long as their portfolio is giong up.