"After four consecutive months of gains, sales of existing U.S. homes posted a surprise drop in August. The unexpected decline sent stock markets tumbling as investors worried that further fallout in America’s housing market could stall the economy’s recovery -- and possibly lead to a double-dip recession.
A popular taxpayer credit of US$8,000 for first-time homebuyers in the United States and historically low interest rates have been helping drive home sales across the country. But pent-up demand from the new buyers looking to take advantage of the tax credit and super-low interest rates may be losing steam."
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Sales for the month dropped 2.7% to an annual rate of 5.10-million units, according to the National Association of Realtors. Analysts were expecting a 1.6% increase.
The median price fell 12.5% from August 2008 to US $177,700.
Probably the brief hope of recovery is fading out.
I think this was bound to happen.As unemployment in the U.S. heads into the double digits, distressed sales accounted for 31% of sales in August.The inventory of existing homes for sale in August fell 10.8% to 3.62-million units from July.
Some experts say "Despite the decline, inventories are still high considering the weak sales rates and “would probably be even more so if all those wishing to sell their home actually had the house on the market instead of pulling it off in the face of eroding prices,” said Joshua Shapiro, chief U.S. economist with MFR Inc.
The market also faces a “considerable amount of inventory that is still tied up in the legal process surrounding foreclosure and therefore is not counted as being for sale, and the large number of homes that have already been purchased out of foreclosure by speculators but that will eventually hit the market,” Mr. Shapiro said."
Toll Brothers Video..... Must See!
Looking For Schmucks
http://www.youtube.com/watch?v=7z4jkUOLy1c
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