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Existing home sales dive 27.2 percent to 15-year low

WASHINGTON (Reuters) – Sales of previously owned U.S. homes dropped more steeply than expected in July to their lowest pace in 15 years, an industry group said on Tuesday, implying further loss of momentum in the economic recovery.

The National Association of Realtors said sales dropped a record 27.2 percent from June to an annual rate of 3.83 million units, the lowest level since May 1995. June's sales pace was revised down to a 5.26 million-unit pace.

Analysts polled by Reuters expected existing home sales to tumble 12 percent to a 4.70 million-unit pace from the previously reported 5.37 million units in June.

http://news.yahoo.com/s/nm/us_usa_economy;_ylt=AkTH0NaWj9LLJ...



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Michael Nystrom's picture

1995 Levels - Guess where the Dow was?

Guess where the Dow was in 1995?

Answer: 4,000.

We're not going to be hanging out here at 10,000 for much longer.

http://bigcharts.marketwatch.com/advchart/frames/frames.asp?...

The only way to make sense out of change is to plunge into it, move with it, and join the dance. - Alan Watts

hey Michael

I remember you predicted back in March DOW at 4,000 by November.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

meekandmild's picture

Is it heading there again

will we see 4-6 thousand range when the bottom drops out in $ value and Economics get worse?

Michael Nystrom's picture

I think so

I cannot see any reason why the Dow is trading where it is.

When I moved to Japan in 1990, right at the peak of their bubble, their stock market was trading at 38,000. Today it is at 10,000 - down about 75%

I'm pretty sure we're headed back down to Dow 4,000 - possibly lower. Look at the economy. Look at unemployment. What is there to support these valuations?

Baby boomers are retiring, and will be needing any retirement funds they have in the stock market. That means net withdrawals, as who is there to replace those funds that get pulled? Not my generation, not gen Y. Not Japan - they're getting old, too. China? China is investing domestically.

What goes up, must come down. Its a law.

The only way to make sense out of change is to plunge into it, move with it, and join the dance. - Alan Watts

Well

If the Federal Reserve is willing to prop up the bond market by monetizing the debt, prop up the real estate market by buying toxic mortgages, why couldn't they prop up the stock market by purchasing stocks? I doubt it would work, but I think they might try.

If the market drops that much I think Helicopter Ben will lose it. What will they try to do to combat deflation when all of the ammunition is spent?

"The sinews of war are infinite money" ~ Marcus Tullius Cicero

bump

truly amazing numbers.

Thanks for posting.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15