Today's Coming Crisis Movie

Friday, March 11, 2011

New Home Sales Continue Their Descent Into Oblivion

For those who are thinking about buying a home or investing in real estate, this historical chart of new home sales is something that you are going to want to take a close look at.

This is what a real housing correction looks like.

The bottom falls out.

We have not seen this type of a correction/collapse in the existing home sales/prices arena but we will shortly as interest rates and food and energy prices are about to bring a lot of pain to the economy and housing market.

We are yet to pay the full price for the excessive credit bubble that has fed the housing market for nearly a decade.

Excessive credit always leads to excessive corrections.

This trend/collapse of the new home market is yet to hit bottom as the Census Bureau announced recently that new home sales in January of 2011 came in at a 284,000 seasonally adjusted rate. This pace is down 18.6% from last January and it is the weakest demand for new homes going back over 40 years. (read more)