U.S. new home sales hint at prolonged housing weakness

Comments (14)
Simplerman wrote:

The boom has turned to bust.

The economy is not any better than it was in 2009 – unless the stock market is your economy.

Apr 23, 2014 11:36am EDT  --  Report as abuse
keebo wrote:

It must be the weather.

Apr 23, 2014 11:38am EDT  --  Report as abuse
gcf1965 wrote:

Probably the high pollen count keeping people away, keebo

Apr 23, 2014 11:51am EDT  --  Report as abuse
bobz wrote:

Bad news is good news! Numbers schumnbers it doesn’t matter. The Fed has our back. Screw the savers!

Apr 23, 2014 12:18pm EDT  --  Report as abuse
disenwit wrote:

It’s Obamacare causing a housing shortage already!!

Apr 23, 2014 12:53pm EDT  --  Report as abuse

Why is this news to anyone? Just look at what happened. You flat-out can’t (and shouldn’t) get a loan for $200,000+ for a decent home in a nice area, when the only jobs that have been bouncing back since the recent DEPRESSION are minimum wage part-time gigs.

I mean, it’s not like this is rocket science. Pretty much the only people buying homes right now are investors (foreign or domestic) looking to rent out their purchases. Very few are being purchased by single families, because given the massive inflation of the prices of vital resources and the stagnation in incomes, working families can’t afford to become home/landowners.

Right now we’re at a tipping point. Either the prices will HAVE to decrease to a reasonable and affordable level on current average incomes, or wages will have to increase to keep up with the ballooning price of real estate, or we will be entering an era of new feudalism where the vast majority of the land belongs to a relatively few wealthy landowners and rented out for the highest price a family can possibly afford.

And the problem will only worsen as retiring baby boomers seek to sell their properties and live out their retirement dreams. It begs the question: to whom will they sell this hidden glut of properties? Gen X and the Millennials by and large can’t afford to buy them up at current asking prices. Either the Boomers’ll get a much skimpier retirement than they’d hoped, or large portions of real estate will get snapped up by yet more wealthy investors, further dooming these younger generations.

Apr 23, 2014 2:34pm EDT  --  Report as abuse
SaveRMiddle wrote:

In today’s world of decimated wages, just how does Main Street save up the $50,000 down payment/closing costs to purchase a home…new or otherwise?

Apr 23, 2014 2:46pm EDT  --  Report as abuse
Crash866 wrote:

Where’s your touchdown dance today????

Apr 23, 2014 2:49pm EDT  --  Report as abuse
Crash866 wrote:

disenwit
Is that what you do when reality is too much for you lemming?

Apr 23, 2014 2:50pm EDT  --  Report as abuse
gcf1965 wrote:

But the last time the numbers came out the housing market showed signs of recovery. These fools cant think past teh end of the day. I am truly convinced most analysts have no idea what is happening or what anything means. They simply jump on the most recent report and say what it seems to mean to them today.

Apr 23, 2014 3:28pm EDT  --  Report as abuse
DBP wrote:

I have seen several homes in my area sell in days at above asking price. I have put a not for sale sign on my front door. Have atleast 3 offers a week at twice what I paid for it just over 2 yrs ago. Last saw this happening in 2006 when we sold our old house for almost 10 times what it was really worth. They lost the house to the bank within a year.

Apr 23, 2014 3:58pm EDT  --  Report as abuse
yamanoor wrote:

Yeah, greedy real estate lenders and banks want to move from bubble to bubble..

Apr 23, 2014 4:02pm EDT  --  Report as abuse
GeoThermal wrote:

Jobs first, housing will follow. Morons!

Apr 23, 2014 4:53pm EDT  --  Report as abuse
Crash866 wrote:

DBP
“Have atleast 3 offers a week at twice what I paid for it just over 2 yrs ago.”

312 offers at twice what you paid for it in the last two years and you wont’ sell. I think most would. Your story is so very believable

Apr 23, 2014 10:07pm EDT  --  Report as abuse
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