Thursday, August 26, 2010
The dreaded double-dip may be just around the corner. With the latest home-sales figures showing a huge drop off, compared to last month and last year, economists fear the housing market could experience another sustained fall in prices, making it that much more difficult for the economy to rebound.
Sales of single-family homes in July fell to their lowest level since May 1995. Sales of all existing homes, including townhomes, condominiums and co-ops, dropped 27.2% from June, and more than 25% in comparison to the July 2009 numbers. The situation was particularly dramatic in the Midwest, where existing-home sales were down 33.3% from July 2009.
The plunge in sales was partially attributed to the end of the $8,000 homebuyer tax credit offered by the federal government.
-Noel Brinkerhoff
Plunging Home Sales Could Sink Recovery (by Hibah Yousuf, CNNMoney)
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