Increase the size of Amy Sancetta/AP
High unemployment, larger required payments and tougher lending standards prevent many houses buying people.
High unemployment, larger required payments and tougher lending standards prevent many people buying homes Amy Sancetta/AP.Sale of real estate offers U.S. dropped to a six month low in August. The fourth direct monthly decline during the high season buy season proposes that housing market is years away from a recovery.
The Commerce Department said Monday that new home sales by 2.3 percent to a seasonally adjusted annual rate of 295.000 fell. That was less than half of the approximately 700,000, which economists say must be sold to maintain a healthy housing market.
Real estate offers sales recordings are on pace for the worst year since the Government half a century ago.
High unemployment, larger required payments and tougher lending standards prevent many houses buying people. Plunging stocks and people keep the housing a growing fear that again could in an another recession also tip the United States market.
Pierre Ellis, analyst at decision economics, said that up to the increase in the wages and takes up to rent, home sales are languishing.
The "Bad news is obviously no optimism, sales until be selected to any degree," Ellis said.
While new homes are less than one-fifth of the housing market, they have a colossal impact on the economy. Each home built by an average three jobs for a year and is about control $90,000 according to the National Association of home builders.
Last year was also the fifth year that sales have fallen. There followed five years of record highs, when housing booms was.
The average selling price of a new home fell nearly 9 percent to $209.100 the lowest price since October last year. The proposes builders slashing are their prices to compete with comparatively cheaper previously occupied houses.
Foreclosures and short sales - as lender to accept less for a House than a mortgage is value - force prices down. Apartments are sold at an average discount of 20 percent, and they are lower, neighboring values at home. Many re-sales of new homes, create an average 30 percent differences in the prices compared to bargains has made.
Many developers have stopped work on projects and waiting for demand to pick up. House building is nearly 6 percent last year.
Still, permits, a gauge of future construction almost 8 percent increase this year. Builders can prepare to start as soon as the economy improved deadbeat project.
Revenues amounted to 13.6 percent in the Northeast, which was hit by Hurricane Irene at the end of the month, unequal you crashed United States. You were also 6.3 per cent in the West and 2.4 percent in the South. She rose by 8.2 percent in the Midwest.
All sales remains weak. The August sales was 5.03 million pace for previously occupied homes. This is slightly above last year's sales, which were the fewest since 1997. Economists say that around 6 million older homes must be sold each year, to obtain a healthy housing market.
Home prices decreased more, since the recession, on the basis of percentage than during the great depression of the 1930s. It took 19 years to recover rates completely after the depression.
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Sales fell by 2.3 per cent in August, the fourth direct monthly decline.
Sales of previously occupied homes rose by 7.7 percent in August to a rate of 5.03 million in August.
Builders broke ground on 5 percent fewer homes in August; Apartment building fell 12.4 percent.
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