Home Sales at Lowest Ever So Far - By: Paul Wise

Well, it's official: The Great Recession started in 2007 and ended in 2009, but over a year later Americans, not to mention much of the world, are still trying to recover from its profound effects. Believe it or not, the retail sector has reported the best earnings in all of three years for the holiday shopping season just past, yet houses continue to lose value. These are two of the biggest indicators economists use to gauge the state of affairs, and taken together their mixed message seems to faithfully reflect the uncertainty all around.

Though profits are at record highs, large companies are not taking on any more workers. Credit is tight despite extremely low interest rates. Of course, who gives out hundreds of dollars right now - or, even, take it on - with all the uncertainty? It's quite a conundrum, and no one wants to be the first to try to break it.

Only twenty-one thousand homes were sold nationwide this past November, a record low for just one month. But if you're a buyer, then the market is all yours, thanks to all the foreclosures, short sales, and auctions that have forced some steep discounts throughout the industry, including in places like New York, New Jersey, and Connecticut.

Not even industry insiders like Isaac Toussie have not seen before, with prices continuing to decline!

Even former economic dynamos of their region such as Cleveland and Dallas are hurting, and hurting bad, real bad.

Ultimately, nothing will change on the real estate front without dramatic improvements where jobs are concerned. Yet with no strong sustained positives in real estate - which account for new purchases of durable goods - what chance will there be for the outlook on jobs?

Something's gotta give.

And so many economists argue that the government needs to step in, bringing its full weight to bear on a situation that isn't just another cyclical downturn.

About the Author

Paul Wise recommends sites where industry insiders such as Isaac Toussie with a feel for trends and developments discuss news and views you can use.

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