| jul 30 2006 | | Housing bubble deflates. | Existing home sales in June fell 8.9%, vs. June 2005
New home sales in June fell 11.1%, vs. June 2005
The number of unsold new homes reached a record 566,000, representing a 6.1 month supply
The number of existing homes for sale reached a record 3.73 million, a 6.8 month supply -- the largest such supply in nearly nine years.
Condominium prices declined 2.1% in June
Some states (California) report a 20% drop in home sales for the year, while some metro areas (Orlando, Phoenix) report a 300% increase in inventory in the past year.
Not exactly headline news in America but as I reported the bubble has popped and the air is coming out. What does this mean? Well the American consumer is not going to be able to keep the recovery going and the economy is going to reverse.
While helicopter Ben is using all the limited powers at his disposal to fight inflation that is facing the nation, he is unable to fight the bigger threat of deflation which is coming on the blind side. This is actually the bigger danger.
| | Respond... |
|
|
 |
|
