Home sales at lowest level since 1963! by Barbora Misakova

Is this divine punishment? It was housing market which was at the epicenter of the financial crisis that dragged the country and the rest of the world into recession. Today it is the same housing market which is not able to bring itself to its feet again. Worrying data from previous few days have been confirmed. What is more, new homes sales figures are even worse. It shows the housing sector in July slumped to its lowest level since 1963, what fuels concerns the world’s largest economy could slip back into recession. According to the Commerce Department, sales of new single-family houses slumped 12.4 percent in July. July sales broke below the 300,000 mark for the fi! rst time in 47 years. In spite of attractive prices and record low borrowing costs, housing market cannot do anything to make its position stronger. As France 24 pointed out “the number of unsold new homes are at the lowest since September 1968.” Even though orders for big-ticket items in the United States rose in July, as the Commerce Department showed, they were much lower than expected. There are many other indications of a faltering economy, what can heighten the potential for housing market to drag the economy back into recession. But not everyone sees it so negatively. As analyst Andrew Busch of BMO Capital Markets said: “there are still some low hanging fruit to be picked by policy makers to aid the economy and business.” Such a “low hanging fruit” could be according him the government cut of foreign tax earnings for US companies in a bid to boost growth.

related story (sgx18075): http://www.france24.com/en/20100825-new-home-sales-plunges-l...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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