U.S. Dec. new home sales flat as inventories build

[TexasBushwhacker]

"WASHINGTON (AFX) - Sales of new homes were nearly unchanged in December after a big drop off in November, the Commerce Department reported Monday

New home sales increased 0.1 percent to a seasonally adjusted annual rate of 1.098 million units in December from a downwardly revised 1.097 million in November, originally reported as 1.126 million. Sales had peaked at 1.263 million in October

The inventory of unsold homes on the market increased by 2.6 percent to 432,000, the highest level in 31 years. The inventory represents a 4.8-month supply at current sales rates, the highest since July 2000."

http://www.fxstreet.com/nou/noticies/afx/noticia.asp?pv_noticia=1107184619-c00e0f08-33780

[Warren Stupidity]

1. uh-oh

sounds like 87 again.

[NYC]

2. Highest level in 31 years.

That would be 1974. I think I knew a lot of people out of work at that time.

[mhr]

3. Unemployed 57 Months - Home Ownership Is Out Of The Question

eom

[TexasBushwhacker]

4. The thing that's scary is that mortgage rates are so low

and yet they STILL have this many houses unsold, and this is just the NEW houses. How many months worth of older homes are out there on the market and what kind of hit are people going to have to take on those?

It's not surprising really though. The article says that the median price for homes is $218,900. The median HOUSEHOLD income for 2003 was $43,318 (and more than 50% of households have 2 earners). A family making that median household income cannot afford the median priced house. In fact, they can only afford a house that's worth about HALF that median house price. We have record numbers of families in poverty and record numbers of workers without health insurance. We have a record number of personal bankruptcies being filed.

I'll actually be in a position soon where I could probably buy a house, but I'm thinking I might as well keep renting.

BTW, the numbers came from the census bureau:

http://www.census.gov/hhes/www/income.html

[TexasBushwhacker]

5. Saturday morning kick - N/T