Editor’s Comment: THIS IS WHY EVERYONE SHOULD BE ALARMED AT THE FAILURE OF THE COURTS AND GOVERNMENT AGENCIES TO GIVE THE STOLEN PURSE BACK TO INVESTORS AND BORROWERS. EVEN IF YOU ARE NOT UPSIDE DOWN, EVEN IF YOU DON’T HAVE A PREDATORY LOAN YOUR HOME, YOUR LIFE AND THE ECONOMIC HEALTH OF YOUR SOCIETY IS CRUMBLING UNDER THE WEIGHT OF SOME IDEOLOGICAL NOTION THAT IT IS BETTER TO FORCE MILLIONS FROM THEIR HOMES AND CHEAT INVESTORS THAN TO LET THEM HAVE RELIEF. THE FIGURES WERE BOGUS. PRINCIPAL REDUCTION IS NOT A GIFT IT IS A RECOGNITION OF REALITY.
Home Sales at Lowest Level in More Than a Decade
Housing sales in July plunged to their lowest level in more than a decade, exceeding even the grimmest forecasts.
July was the first month that buyers could not qualify for a tax credit of up to $8,000, so analysts were expecting weak results. But their consensus called for a decline of about 13 percent.
“Truly gut-wrenching,” said Jennifer H. Lee, senior economist for BMO Capital Markets.
July sales were down 27.2 percent from June. It was the lowest rate for existing-home sales, which include houses, condos, co-ops and town houses, since 1999. For sales of single-family homes, it was the lowest rate since 1995.
The number of homes on the market increased only slightly but the large drop in sales was enough to push inventory levels up to 12.5 months. A normal market has an inventory level of about six months.
Higher inventories anticipate price declines as many sellers compete to take advantage of fewer buyers.
The drop in sales came despite the lowest mortgage rates in decades.
The Realtor group was optimistic the fall-off would be temporary, as long as the economy improves — a rather big “if.”
“Given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs,” the group’s chief economist, Lawrence Yun, said in a statement.
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