Two days ago the data on new home sales was published for July. What caught my (and probably everybody else’s) eye was the all time low in new one family home sales, at 276,000:
And how’s the high end market doing? See Breakfast with Dave:
The high-end market, in particular, is under tremendous pressure. In fact, it is becoming non-existent. Guess how many homes prices above $750k managed to sell in July. Answer — zero, nada, rien; and for the second month in a row. Only 1,000 units priced above 500,000 moved last month. That’s it!
This is really as bad as it gets. Mish sums it up succinctly:
Inventory is up, sales are down, sentiment has soured, and tax credits have gone poof.
Prices will follow.