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Housing Sales Way Down: Bad Economic News

Housing Sales Way Down: Bad Economic News

CNN reports US existing home sales down a stark 27% to the lowest in 15 years.

Home resales dropped a record 27..2 percent—nearly twice as much as analysts    had expected—to an annual rate of 3.83 million in July, the National Association of Realtors said Tuesday.” they reported.  They had expected a drop of only around 14 per cent

Some of the drop is due to the end of the Obama homebuyers’ tax credit and the rest, say experts, to the economy.  The rest can be attributed, they say, to the softening economy. 

This bodes ill both for the recoving economy and the prospects for Democrats in the fall elections.

More later on Care2.   If you are facing troubles selling your home comment here and let us know what’s going on.  We’ll try to use your ideas for a followup story.

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21 comments

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8:32AM PDT on Aug 30, 2010

noted

9:45AM PDT on Aug 28, 2010

Home sales are down because banks will not give mortgages to average people, period. It was banks speculating and buying and selling mortgages that got us in this mess in the first place, then we give them huge sums of public money to bail them out of a financial crisis that was on paper only because they threaten to bankrupt America if we don't, and they repay us by only making loans to corporations and the wealthy.

6:21PM PDT on Aug 27, 2010

This whole "everyone should buy a house as soon as they can" idea has screwed more people...I'm glad many seem to be taking the huge financial commitment (and indebtedness to BIG business) more seriously.

5:46PM PDT on Aug 26, 2010

Just wait a few more months, prices will go down even more. Plus, they generally abate in the winter anyway...that's always true in any economic time, especially in northern states.

For anyone who has cash or a steady job, this winter or next is a good time to buy!

Kudos to Sheila you're exactly right they are ruthless pirates: Say you put a big downpayment on a very modest 80K house - your loan is only 60K. Even if you get a (newly lowered) competitive rate of 4.25 on a 20-year mortgage, with all the closing costs front-loaded and the tax and insurance fees, you're going to be paying 4-500 hundred a month (which seems cheap, but) or 5-6,000 a year which over 10 years is 60K and 20 years is 100-120K. So unless you eat rice and beans and pile onto the principal you've forked over twice the amount of the loan to the filthy greedy banks!

It is outrageously predatory, much worse than credit cards - a nearly 2 for 1 loan? WTF?? That's worse than the worst leg-breaking Mafia loan shark. If I thought Obama or anyone else would listen I would write screaming for drastic reform. But getting them even to pass a weak and watered down FinReg for the banks this summer was like pulling teeth - the corporations own us!

5:14PM PDT on Aug 26, 2010

We tried to buy a house a couple months ago for $142K. The seller would have had to bring money to the table to close the deal because he was willing to sell it that cheap. (Fairly all involved thought the house was worth at least $160K.) The appraiser (randomly selected because of rule changes) appraised the house at $135K because the moron used trailers and foreclosures in his comps. So no deal.

Also, the mortgage industry is a huge rip off. You can pay your mortgage on time every month for 10 years, fall behind in your payments because of job loss or illness (or both) and lose your house to foreclosure even though you already paid them about 70% of what you borrowed. Because of the way they calculate morgages and front-load the interest they'll say you still owe the bulk of your principal. It's really an evil industry and needs to be changed.

11:24AM PDT on Aug 26, 2010

When I hear about problems I usually have a good think and then write to Obama to give him my ideas - or complain as to why he is not doing this, that, or the other. I usually pull no punches, and I am sure he doesn't read my e-mails but at least I feel as if I have done all I could.
But this time I have no idea what to ask/tell him to do. I wish I had ideas, but I do not. I have worked all my life and loved my work but now I am unemployed! I am willing to do anything and I call the local Manpower agency frequently, they have nothing and are laying off their own staff.
I am usually so vocal on every issue, but on how to jump start this economy I do not know what to say. We are in a gridlock. I do not envy Pres. Obama's job and I wish I could send him some ideas. Losing our local shops and businesses is like losing good friends, it is all very depressing.

10:30AM PDT on Aug 26, 2010

Large monopolistic corportaions are makeing excessive profit, there are more and more middlemen trying to make a living off of a shrinking base. There is over complexity all adding expense rather than saving time and money. We are on a cusp too many people are extravagantly rich on the backs of too many people who are becoming poorer every day.. Everyone tries to ride the bubbles because they have no where else to turn and still they get burned.
We will have to learn how to live within the means of our planet soon or we will crash. Systems that crash have to start all over from the beginning. To keep this from happening we need to focus on multiple means of sustainability, local, regional, national and international rather than focusing vast wealth on protecting resources from being cut on the darkside of the planet. Terrorists are not the only way supply lines can be cut and just in time delivery anywhere is an extemely vulnerable type of system. Foucsing on single resources givves the monopolies a chance to make exteme profits, redundant system require more money going into multiple processes to keep things running so if one fails another can pick up the slack for at least a little while..
High tech war is has a higher and higher rate of diminishing returns and is guaranteed to bankrupt us and we still wont be safe.

10:25PM PDT on Aug 25, 2010

Thanks

7:40PM PDT on Aug 25, 2010

IT HAS TO GET BETTER!

7:23PM PDT on Aug 25, 2010

An Alternative to Capitalism (which will end foreclosures)

The following link takes you to an essay titled: "Home of the Brave?" which was published by the
Athenaeum Library of Philosophy:

http://evans-experientialism.freewebspace.com/steinsvold.htm

John Steinsvold

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