Items of Interest:
Sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest level since May 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 less than six months.
July Existing-Home Sales Fall as Expected but Prices Rise — Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors...
Felix Salmon: America stops buying homesJoe Weisenthal / Clusterstock: CHART OF THE DAY: In Case It Wasn't Obvious That The Homebuyer …Dina Elboghdady / Political Economy: Sales of previously occupied homes plungeMegan McArdle / The Atlantic Online: Home Sales Plunge In JulyAlex Wagner / Politics Daily: Biden Champions Recovery Act Investments in Clean Energy, ScienceStephen Gandel / The Curious Capitalist: The Not-So-Bright Spot in the Gloomy Housing ReportChristine Hauser / New York Times: Wall Street Hit Again, This Time by Housing DataJames Ledbetter / Moneyblog: Why Is Anyone Surprised at Plummeting Home Sales?Katie Allen / Guardian: US home sales in record July slumpBarry Ritholtz / The Big Picture: Exisiting Home Sales Plummet 27.2%Catherine Rampell / Economix: Existing Home Sales Swan DiveJohn Cole / Balloon Juice: We're Going Down, Down, Down — The real estate market just dropped a bomb:Jennifer Rubin / Commentary: Setting the Stage — John Boehner's timing is pretty good.
How Bad Was July's Plummet in Home Sales?
Larry Johnson / NO QUARTER: Obama's Alternate Bizarre UniverseFrank Ahrens / Political Economy: Plunge in home sales not pretty, but necessary for real recoveryKevin Drum / Mother Jones: Housing Market UpdateAndrew Sullivan / The Daily Dish: Housing Tanks — Felix Salmon gasps at the National Association of Realtors report:David Streitfeld / New York Times: U.S. Home Sales at Lowest Level in More Than a Decade
Dave’s New Top Ten Reasons to Fade the Economy -- Why are all these terrible things happening? In a May 2009 essay entitled “Demographics and Depression,” I warned First Things readers that the great economic headwind of our time was demographic:
Our children are our wealth. Too few of them are seated around America’s common table, and it is their absence that makes us poor. Not only the absolute count of children, to be sure, but also the shrinking proportion of children raised with the moral material advantages of two-parent families diminishes our prospects...