New Home Sales Dive to Record Low

[briann]

http://www.nationaljournal.com/economy/new-home-sales-dive-to-record-low-20110323

New Home Sales Dive to Record Low

By Clifford Marks
Wednesday, March 23, 2011 | 10:36 a.m.
Scott Olson/Getty Images

Sales of new homes plummeted in February to the lowest level since the government began tracking them in the 1960s.

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Correction: The original version of this report misstated the time period for the indicator of new homes sold. It is a seasonally adjusted annual rate.

The pace of new home sales plummeted to a record low last month, the Commerce Department reported Wednesday in a further sign that the battered housing market is only slumping further.

(RELATED: Why Many Americans Still Want to Buy)

Sales fell 16.9 percent from January, delivering a shock to analysts who had expected a gain for last month. The seasonally adjusted annual rate of 250,000 homes sold marks the slowest pace recorded since the data series began in the 1960s.

Median sale prices fell 13.9 percent, which represents the sharpest one-month drop on record.

Wednesday's numbers for February were coupled with an upward revision in January's pace from 284,000 to 301,000 homes sold.

(VIDEO: Be Afraid: U.S. Economy Is at Risk)

Overall, though, the bitter news seems only cement a fast darkening picture of the housing market, and it follows closely on the heels of a disappointing 9.6 percent drop in existing home sales reported earlier this week.

[muman613]

Anyone interested in buying a home? Ive got one for you..

[cjd]

Banks are not giving out loans unless both the buyer and the property are up to code so to speak.... The days of pushing through questionable deals has gone away for a while... This on top of ever higher property tax have made home ownership unattractive to first time buyers... Anyone buying a house today had better plan on keeping it for quite a few years.

[briann]

Banks are not giving out loans unless both the buyer and the property are up to code so to speak.... The days of pushing through questionable deals has gone away for a while... This on top of ever higher property tax have made home ownership unattractive to first time buyers... Anyone buying a house today had better plan on keeping it for quite a few years.

and of course, as expected the Obama administration keeps telling the banks... LOAN DAMNIT!!!  why arent you guys lending more!!!???  We are pumping in all this money, and we bailed you out so now we need you to make more bad loans in return!!!

This is very similar to Japan in the 90's... same stupidity, same result.