Friday, September 24, 2010

New home sales: Worst August on record

New homes in August sold at the second-slowest monthly pace since 1963. Only May of this year was lower. No August on record was lower than August 2010. Fewer homes sold in August than during any month of the 2007-2009 recession. Historically, home building has been an essential part of economic recoveries.
Sales of new homes had their second-worst month on record in August, signaling that the housing market will remain a drag on the economy.

Last month's new home sales were unchanged from a month earlier at a seasonally adjusted annual sales pace of 288,000, the Commerce Department said Friday. Sales were down by 29 percent from the same month a year earlier.

Normally the building industry powers economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

But housing has been at the center of this downturn and it shows no signs of recovering quickly.

The only time new home sales were slower was in May, when the sales pace was 282,000. That's the worst pace on records dating back to 1963. July's results had been the worst on record, but were adjusted upward.

High unemployment, tight credit and uncertainty about home prices have kept people from buying homes. Government tax credits boosted the market earlier in the year, but those expired in April.

The median sales price in August was $204,700. That was down 1.2 percent from a year earlier and the lowest since December 2003.

22 comments:

  1. yeah but what about Arlington? Oh wait, it went to crap too! HAHAHAHAHAHA

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  2. "Tight credit" is a joke. If credit was determined by the market and not government fiat, interest rates would be sky-high, and home prices would fall to their proper levels.
    Remember when banks paid something called "interest?"

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  3. I thought no one cared about Arlington.

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  4. Everyone cares about Arlington until the prices are declining, then the hypocrites like Obsession chime in that nobody cares! lol

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  5. "Everyone cares about Arlington"

    So its true then? Its true that (even though the vast majority of them dont live there, or could never afford it) everyone DOES care about Arlington?

    Truth of the matter is, yeah, no one talks about it when in the occasional month Arlington prices go down - largely because (a) its been down only 5 of the last 19 months (and the general trend is up) and (b) even with the occasional MOM decline, the prices are far far above the bottom in march 2009 (the same month when the doomers promised us we were "only in the 3rd inning").

    So now that I have admitted the truth, why dont you do the same? Its true, Arlington is holding up much much better than the rest of the DC area, and this BURNS you, burns you to your core... You simply cant STAND it that some areas truly are near peak pricing. In fact it drives you so crazy that some times you sit there at night thinking "how is it possible Arlington has done as well as it has"???

    Now, im sure you are thinking of your retort. My guess is you are not going to admit your arlington obsession, and instead attempt to mock by showing some house somewhere in arlington who really did decline close to 40%. Spare me...

    The fact of the matter is, the VAST MAJORITY of Arlington has not suffered the doom predicted again and again on this blog. The VAST MAJORITY of Arlington sits at or just slightly below peak prices.

    Look, this is an anonymous blog, and your response will be anonymous. I am being honest with you, be honest in return and admit you really really do care that Arlington on the whole has not crashed as so many have predicted.

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  6. "Its true, Arlington is holding up much much better than the rest of the DC area, and this BURNS you, burns you to your core... You simply cant STAND it that some areas truly are near peak pricing."


    OK, so in the spirit of admitting the truth, yeah YOUR GODDAMN RIGHT PRICES IN ARLINGTON ARE PISSING ME OFF!!! I mean Jesus Christ, prices are just f*cking sitting there, still selling for close to peak value. Its not right that little tiny rundown homes cost that much, and the greedy owners like YOU should not be so stubborn to insist on getting your 500K paydays for doing NOTHING!!!

    In fact, the more I think about it, the madder I get. Let me say to you and all other greedy arlington owners just like you - GO F*CK YOURSELVES!!!

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  7. Wow anon, alot of anger management issues here! I used to live in the DC area. Like you, I used to seethe with envy when I saw how other people could pay prices my husband and I simply could not fathom.

    Eventually, I came to the painful reality that there simply are alot of people who are willing to pay more than we are. We moved away to Central PA where things are much more affordable, and became much happier. Perhaps you should look into the same thing.

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  8. "So its true then? Its true that (even though the vast majority of them dont live there, or could never afford it) everyone DOES care about Arlington?"

    Yeah everyone cares because one anonymous user said so! It kinda gets old hearing about Arlington in every National figures news posting...but to be honest, this Californian is glad to hear you are feeling the prices fall now too! Eat it buddy, youve been talking a lot of shit for a while, time to take your bite out of that sandwich too! ;)

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  9. OK, so in the spirit of admitting the truth, yeah YOUR GODDAMN RIGHT PRICES IN ARLINGTON ARE PISSING ME OFF!!!

    Thank you for having the decency to admit that.


    "this Californian is glad to hear you are feeling the prices fall now too! Eat it buddy, youve been talking a lot of shit for a while, time to take your bite out of that sandwich too! ;)"

    Yep down 5 out of the last 19 months. After a 132% rise for the decade, prices fell 10.02%, bottomed in 2008, posted a .22% rise in 09, and on track for a 3.2% rise for 2010. LOL - Thats some shit sandwich!

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  10. "Thats some shit sandwich!"

    Then why do you continue to sock puppet arguments with yourself, who is "GOD DAMN RIGHT IM MAD"

    I live in Cali, I dont care if prices are up or down on your block pal. I just get sick of hearing "Arlington" when the blog posts about prices in Florida. Its a shit sandwich, because you have nothing to post but fake conversations with yourself in times like now, when prices are declining on your street. How does that shit taste in your mouth?

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  11. Does anyone really think you live in Cali. No, of course not - you are the same troll who sockpuppetted to start this whole thing off

    "Anonymous said...
    yeah but what about Arlington? Oh wait, it went to crap too! HAHAHAHAHAHA

    September 25, 2010 7:19 PM"

    You are beyond pathetic. You come here day after day and make up conversations with yourself - you are too much of a chickenshit to get a screenname. And then, when you dont get an acceptable response, you manufacture one with fake personas "I live in Cali, therefore I dont care"

    Spare us. This blog is dead and you are the only one here. Quit talking to yourself.

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  12. p.s. Before you post, make sure you pick which persona you are going to be and stay with it when you reply next time.

    I dont know to reply to your "GODDAMN RIGHT PRICES IN ARLINGTON ARE PISSING ME OFF!!!" persona, or the other one that replies to him.

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  13. "Does anyone really think you live in Cali. No, of course not"

    Where do I live then?

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  14. Quit sockpuppeting me. I live in Cali and you cant prove otherwise.

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  15. Im not sockpuppeting you - you are the one sockpuppeting ME!

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  16. Dude - WTF - you really need to be taking your meds.

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  17. Sockpuppetee (I hope)September 29, 2010 4:55 PM

    On a scale of one to ten, how homoerotic is anonymous "sockpuppeting"?

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  18. Sockpuppetee (I hope)September 29, 2010 6:09 PM

    Correction, I meant on a scale of one to ten how homoerotic is anonymous "sockpuppetry"?

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  19. I didnt say you were sockpuppeting me, just that you post comments and replies to yourself. Anyway have fun dude.

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  20. You guys are just plain idiots! Enlightening debate!!

    Bill

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  21. Its all one guy.

    Bill

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  22. Jebus Christ, you're all morons. Get a life and stop your dumb debates and pointless flame posts. I'm tired of clicking comments and seeing the same BS every time. If you don't gave something new and constructive to say then shut up.

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