Just think the economic news couldn’t get worse it just did. Sales of existing home fell a record 27% for the month of July. The biggest sale drop since the last housing crisis in 1995. The National Association of Realtor say it the biggest percentage drop in more than 40 years.
Job growth prospect vanishing despite the lowest interest rates in history along the end of $8,000 tax credits from the Federal government combined to killed off the housing recovery.
Sellers don’t want to lower prices and lose money. Buyers are hesident to buy because housing prices will continue to fall.
“It really is a self-fulfilling prophecy,” said Aaron Zapata, a real estate agent in Brea, Calif. “If all buyers perceive that home prices are coming down, then they will stop making offers — and home prices will come down.”
There is 4 million homes on the market. It will take a year and two week to sell out completely.