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House Sales Unexpectedly Hit Record Low

From Bloomberg:

Sales of U.S. New Homes Unexpectedly Fell to Record Low in July

By Courtney Schlisserman – Aug 25, 2010

Sales of U.S. new homes unexpectedly dropped in July to the lowest level on record, signaling that even with cheaper prices and reduced borrowing costs the housing market is retreating.

Purchases fell 12 percent from June to an annual pace of 276,000, the weakest since data began in 1963, figures from the Commerce Department showed today in Washington. The median price of $204,000 was the lowest since late 2003.

A lack of jobs is hurting American’s confidence, leading to a plunge in home demand that threatens to undermine the economic recovery that began a year ago. Builders are also competing with mounting foreclosures that is forcing down property values…

This is the ‘new normal.’ And, to be fair, Mr. Obama told us there would be ‘change.’

Another Commerce Department report today showed orders for durable goods increased less than forecast in July, a sign one of the few remaining bright spots in the economy is cooling. Bookings increased 0.3 percent, compared with the 3 percent median estimate of 75 economists surveyed by Bloomberg News. Excluding transportation equipment, demand unexpectedly dropped

We have got to find a new batch of economists. Maybe ones who weren’t trained in the Keynesian school.

Economists forecast new home sales would unchanged at a 330,000 annual pace, according to the median of 74 survey projections. Estimates ranged from 291,000 to 355,000. The government revised down the June figure to 315,000

Yet another quiet revision downward. How much more ‘recovery’ can this economy stand?

This article was posted by Steve on Wednesday, August 25th, 2010. Comments are currently closed.

14 Responses to “House Sales Unexpectedly Hit Record Low”

  1. untrainable says:

    Hmm. People are unemployed. Therefore people don’t have as much money as they did before. Then government takes away the tax credit for buying a new home. And now people are not buying houses. Who in their right mind could have expected that?

    Ahem… I did.

  2. BannedbytheTaliban says:

    Tomorrows headline:

    “Sun Rises Unexpectedly in the East, Economist Baffled.”

  3. Liberals Demise says:

    “Summer of Recovery”
    Yet another ‘unexpected’ situation falls on those who are focused like a laser.
    This is like going to the zoo and seeing the monkeys throwing shiite at each other in their cage.

    You catching up on your reading, Barry? Run into any fecal matter?

  4. proreason says:

    hmmmm.

    Home ownership is used to be one of the most powerful ways a person can become independent of a controlling government.

    How strange that the very enlightened progressives that appeared to be elevating home ownership above everything else circa 2000, to the point of virtually giving houses away, are now presiding over the greatest decline in home ownership in American history. Why, it’s almost like they knew that loans for deadbeats would result in the destruction of the American dream.

    Meanwhile, small businesses are declining at a record pace, organized religion is under attack, the nuclear family is dissolving (out of wedlock birth is inner cities is 70%), marriage has been redefined as a contract between two consenting animals, the boy scouts are dihonored, and the sucking sound you hear is states rights being subsumed by the Ruling Class in Washington.

    Maybe there is a pattern in all of that.

    • BannedbytheTaliban says:

      “Home ownership is one of the most powerful ways a person can become independent of a controlling government.”

      Not where I live. I don’t own my home, the state does. And if anybody thinks any different, stop paying your property tax. I rent it from the state, the only thing I own is the equity which the democrats and their planned society bs have erased. In that manner they are achieving social justice. Not by giving the have-nots more of my money, but by eliminating any additional wealth I may accumulate by being a responsible citizen and not living on the government plantation. Like all forms of socialism, American Socialism punishes success and rewards failure.

      Also, you left out a record number of bank failures on your list of the Home Ownership Society’s achievements.

    • proreason says:

      Updated post. Thanks BT.

      I’m in a similar boat as you, btw. I call mine gradual bankruptcy.

    • Rusty Shackleford says:

      Yes, my mom has a house in a very nice area of the country. But the property taxes are ridiculous. And, if she doesn’t pay them, the state will come, take the property, auction it for a fraction of its value to pay the taxes and voila…social justice.

      She has worked all her life and kept that house. Now she’s on a meager retirement and social security. Her retirement was gutted thanks to the actions of democrats. Hurray.

      Seems they do get their way, don’t they?

  5. Ultra-C says:

    Is there any group of people on earth who are perpetually more surprised than government economists? They’re the ones you want answering the door for trick-or-treaters on Halloween, instead of wearily straining to act surprised, they really WILL be spooked every time a kid rings the bell!

    Meanwhile in Realityville, don’t you love the dire predictions of a “double dip” recession? Excuse me, but can someone please explain to me when the freaking recovery was?

    • Liberals Demise says:

      Right next to the ‘Shovel Ready” jobs from last year.
      Can’t wait to hear next years summer come on………

      “A little rain must fall” memo

  6. jackal40 says:

    I wonder if these experts realize that if you remove the Federal spending as a part of GDP (how that ever got added in …) we’ve likely been in a depression? And yet these idiots are surprise each time the jobless claims rise, or housing starts have dropped, or the sun rose in the east; it’s no wonder this country’s economy is circling the commode; we have an idiot leading the country who has surrounded himself with idiots.

    Please NOvember, wake the sheeple up and help us return this country to it’s former glory!

  7. Reality Bytes says:

    Do you think Mel Blank could do a decent Barney Frank? Frank’s voice is so familiar – a kind of Elmer/Sylvester/Daffy Duck Gumbo.

    What do you think?

    First Bawney:
    http://www.youtube.com/watch?v=i2OGXrZEIT8
    Disco Bawney?

    Daffy (in drag)?
    http://www.youtube.com/watch?v=NWzROoxS2b4
    Hmmm….they must have the same tailor

    The Orally fixated Sylvester:
    http://www.youtube.com/watch?v=Xx43vcV2aX0&p=9365C32EC02FD3F7&playnext=1&index=14

    Elmer “Drama Queen”Fudd http://www.youtube.com/watch?v=Yxiv3CBMS4M

    • proreason says:

      Drooling Barney has had a miraculous change of heart about Loans for Deadbeats. He now says the government ‘made a mistake’ by encouraging people to buy houses who ‘couldn’t afford them’. Barney of course, was suckered in just like everybody else, even more surprisingly because he chaired the committe that supposedly regulated the businesses that “made the mistake’.

      In a startling coincidence, the change of heart has happened 75 days prior to his first substantial challenge for reelection in 20 years.

      My view? being buried in a nest of army ants is too lenient for the hate-filled boa constrictor.

    • Rusty Shackleford says:

      So, following it logically, if it was a mistake, who is to blame? Seems the socialists are pretty good at laying blame on people; How about a little goose/gander thing here?

      No, drooling barney the micro-brain doesn’t get by with a “oops, my bad” here. We have it on record his inflamed speeches aimed at hustling republicans and banks into going along with “homes for the poor”. He was its staunchest proponent and architect. Yes, his fingerprints are all over it.

      He should be held accountable and not just in the sense of losing an election but in prison time. He wantonly gave poor people false hope and had a republican done that, they would’ve skewered them. How much money did drooling barney make off the housing boom? I’m guessing it wasn’t small potatoes.

      Hell of a time to admit a mistake. And he doesn’t even really admit it. He just uses the blanket statement “it was a mistake” as if some enormous celestial body came and gravitationally pulled any/all good sense out of it as if it was no one person’s fault in particular. But it was. And we know who they are.

      They should be blamed, charged and imprisoned, their wealth confiscated and distributed to the people who took on loans who could not afford them. Thus, the money will truly disappear forever.

  8. Reality Bytes says:

    I guess Maxine Waters didn’t get that memo. She’s still railing on about afordable housing for the poor.


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