Thursday, August 24, 2006
New Home Sales Tank
Sales of new homes fell 4.3% in July from the June sales pace. The July level of 1.072 million units sold was down 21.6% from a year earlier and was below Wall Street's expectations (a 2.7% drop.) New home inventories are at an 11 year high.
Atrios reacts this way:
Lucky Atrios.
The Big Picture discusses what yesterday's weak Existing Home Sales and today's weak New Homes Sales may mean for the "housing driven" economy and how the economy got to be so "housing driven":
Maybe I'll look into purchasing those Egyptian cotton futures Atrios is so bullish about...
Atrios reacts this way:
Construction jobs are going to start disappearing rather fast I imagine, which could tip us into recession. Then other people lose their jobs. Then the foreclosures...
Fortunately my Egyptian cotton futures investments are netting me 47 quatloos per second.
Lucky Atrios.
The Big Picture discusses what yesterday's weak Existing Home Sales and today's weak New Homes Sales may mean for the "housing driven" economy and how the economy got to be so "housing driven":
The bottom line remains that real estate will no longer drive the economy the way it has over the past 5 years. And nothing else has risen to take its place as a key driver of consumer spending, or creator of jobs.
If that remains the case, its hard to see how a dramatic economic slowdown -- or even a recession -- can be avoided . . .
Maybe I'll look into purchasing those Egyptian cotton futures Atrios is so bullish about...
Comments:
<< Home
nyc educator, another person in these parts who has no grasp of real-world economics said:
"I see a good side to this...perhaps if prices drop, more working people will be able to buy homes."
When will the falling prices hit bottom?
What if "working people" buy homes and the prices continue to fall?
Housing prices are partly a function of interest rates. If you know how high they will go, you can predict -- with some accuracy -- how far housing prices will fall.
Do you know how high rates will go before they turn around and begin to fall again?
"I see a good side to this...perhaps if prices drop, more working people will be able to buy homes."
When will the falling prices hit bottom?
What if "working people" buy homes and the prices continue to fall?
Housing prices are partly a function of interest rates. If you know how high they will go, you can predict -- with some accuracy -- how far housing prices will fall.
Do you know how high rates will go before they turn around and begin to fall again?
Good to hear from you again, nyc educator. How was the vacation? You seemed like you got to quite a few places. BTW, I loved the post you wrote about your daughter and her friend buying the autograph books to get Mickey, Minnie and the other minimum wage cartoon characters at the "Happiest Place On Earth" to sign for them. A great piece.
Thanks RBE.
The vacation was great. I now can't believe I waited 20 years to take a summer off.
I'm told it's 6.50 an hour to be Mickey, but 7.50 an hour to be Captain America at Universal, in case you're contemplating a career change.
One tip--try to stick with CA, and avoid being a Rugrat, as the CA mask actually permits you to breath.
The vacation was great. I now can't believe I waited 20 years to take a summer off.
I'm told it's 6.50 an hour to be Mickey, but 7.50 an hour to be Captain America at Universal, in case you're contemplating a career change.
One tip--try to stick with CA, and avoid being a Rugrat, as the CA mask actually permits you to breath.
Of course CA gets more money than Mickey - he's a stand-in for America, isn't he?
Have you worked summer school all those years you weren't taking the summer off, nyc? If so, god bless you. I worked one summer, but I haven't done it since. And that was back in the day when we didn't have to return to work until AFTER Labor Day.
Have you worked summer school all those years you weren't taking the summer off, nyc? If so, god bless you. I worked one summer, but I haven't done it since. And that was back in the day when we didn't have to return to work until AFTER Labor Day.
Actually, I've worked my college job summers. But since they expanded by one week, and the DoE expanded by two days, they left me with a very brief window, so I closed it.
The ever-shrinking summer vacation. I put that at the head of my complaints about the contract in the UFT survey (along with the lost time, the sixth class, the potty patrol, and the grievance changes.) Did you fill that survey out? The UFT leadership sent it out in the middle of the summer hoping only their cronies would send it back in. But I made a special trip down to 52 Broadway and dropped the envelope off. Had to leave it in front of some bullet-proof glass. Made me feel all warm and fuzzy about my union.
I did fill it out, though I mailed it from Florida. I haven't got high expectations for what it may mean, of course.
reality, you wrote:
"The bottom line remains that real estate will no longer drive the economy the way it has over the past 5 years."
Never again? Are you claiming real estate is terminally dead?
If that's true, everyone should sell, in which case prices would crash and it would become so cheap that owning would cost a small fraction of renting.
You wrote:
"And nothing else has risen to take its place as a key driver of consumer spending, or creator of jobs."
As if anything "takes the place" of real estate. Get yourself a copy of "Economics for Dummies." You really need to learn the basics.
Post a Comment
"The bottom line remains that real estate will no longer drive the economy the way it has over the past 5 years."
Never again? Are you claiming real estate is terminally dead?
If that's true, everyone should sell, in which case prices would crash and it would become so cheap that owning would cost a small fraction of renting.
You wrote:
"And nothing else has risen to take its place as a key driver of consumer spending, or creator of jobs."
As if anything "takes the place" of real estate. Get yourself a copy of "Economics for Dummies." You really need to learn the basics.
<< Home
