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Unexpected drop... What do you think?

Sales of new homes plunged unexpectedly last month to the lowest level since April, a sign the housing market recovery will be rocky.
The 11% slump from Oct's pace shows that consumers are taking their time following an extension of a deadline for first-time buyers to qualify for a tax credit. The incentive was set to expire at the end of Nov, but Congress pushed back the date to April 30 and expanded the program to include current homeowners who relocate.
“They don’t have to act today,” said David Crowe, chief economist at the National Association of Home Builders, who called the results “pretty awful.”
New home sales data are a better indicator of future real estate than sales of previously occupied homes, but capture a smaller slice of the market. The new home figures tally sales agreements signed in Nov., while home resale numbers reflect contracts signed over the summer that were completed in Nov.

 
grlygrlz2

Asked by grlygrlz2 at 10:49 AM on Dec. 24, 2009 in Politics & Current Events

Level 39 (106,530 Credits)
This question is closed.
Answers (49)
  • I'm not making any "quick statements," it's not hard to study a little modern history, and learn from past mistakes from previous presidents!! Do you have any idea who Jimmy Carter is?


    If more people had any idea who Jimmy Carter was, Obama would never have been elected. Shame.
    NotPanicking

    Answer by NotPanicking at 12:14 PM on Dec. 24, 2009

  • grlygrlz2

    Answer by grlygrlz2 at 10:51 AM on Dec. 24, 2009

  • But didn't sales of EXISTING , not new, homes go up? I think so.
    Lindalu2

    Answer by Lindalu2 at 10:51 AM on Dec. 24, 2009

  • So, all of Obama's spending has done squat for the economy?! And here I thought you had to spend trillions of dollars in order to fix a recession! I'm so confused!! LOL :oP
    LoriKeet

    Answer by LoriKeet at 10:53 AM on Dec. 24, 2009

  • But didn't sales of EXISTING , not new, homes go up? I think so.



    In what part of the country? Got a link?
    LoriKeet

    Answer by LoriKeet at 10:54 AM on Dec. 24, 2009

  • Unexpected to who? Everything I've read by economists as well as what I've heard on the radio said this was expected as many people didn't realize the tax credit had been extended...
    mommy_lisa25

    Answer by mommy_lisa25 at 10:54 AM on Dec. 24, 2009

  • Linda, you obsiously have NO clue how that works, do you?
    For the clueless let me explain....
    New Homes and existing Homes measures two different sets of times.
    Existing Homes actually reflect real estate offers that were entered from one to four months earlier. So November closing reports reflect the increased confidence that occured during mid- to-late summer of 2009.
    Resales get calculated when the sales closes.
    New home sales are calculated when the deal is made.
    grlygrlz2

    Answer by grlygrlz2 at 10:56 AM on Dec. 24, 2009

  • I think I saw on AOL news page or maybe Yahoo's news page that in November the sale of EXISTING homes went up. If I can find a link I will try to post it. My realtor friend says that sales and prospects for the future are looking up,too. But that's just my side of this whole story and I will leave it up to y'all to debate the home sales stuff. ;-)
    Lindalu2

    Answer by Lindalu2 at 10:57 AM on Dec. 24, 2009

  • LoriKeet, don't make quick statements about spending and the lack of results when it's been less than a year. The tumble our economy took is going to take years to recover from, and it won't be until then that we will know what good or harm the stimulus did.
    mommy_lisa25

    Answer by mommy_lisa25 at 11:00 AM on Dec. 24, 2009

  • LoriKeet, don't make quick statements about spending and the lack of results when it's been less than a year. The tumble our economy took is going to take years to recover from, and it won't be until then that we will know what good or harm the stimulus did.

    ***

    I'm not making any "quick statements," it's not hard to study a little modern history, and learn from past mistakes from previous presidents!! Do you have any idea who Jimmy Carter is?
    LoriKeet

    Answer by LoriKeet at 11:15 AM on Dec. 24, 2009