Home Sales Decline 2.3% In August

We have record low mortgage interest rates. We have home prices off 30% from their highs in 2006. We’re in peak home buying season. And yet home sales keep falling month after month.

We’re headed for the worst year in home sales in 50 years since these stats started getting compiled.

What is preventing people from buying homes? The expectation that prices will fall more in the next year. Many people don’t have jobs or full-time work, so this prevents them from buying. And tough new mortgage lending standards exclude many who would’ve qualified for such mortgages prior to 2007.

The AP says: Sales of new homes fell to a six-month low in August. The fourth straight monthly decline during the peak buying season suggests the housing market is years away from a recovery.

The Commerce Department said Monday that new-home sales fell 2.3 percent to a seasonally adjusted annual rate of 295,000. That’s less than half the roughly 700,000 that economists say must be sold to sustain a healthy housing market.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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