Home Sales Continue to Fall

The country's economic picture continues to sour as homes sales - both for new and existing homes - continue to fall with drops in home values accompanying the lower sales levels. In this area, the volume of sales has plummeted. Thankfully, prices have remained relatively stable - especially compared to other parts of the country. Personally, until the housing industry revives and revenues derived from it that have a tremendously wide ripple effect increase, I do not see any hope for an improved overall economy. Around these parts, mortgage lenders, realtors, contractors, title insurance companies and real estate law firms, and many others are really hurting. Naturally, the Chimperator hasn't yet figured out that the country is in a recession (the man is an utter moron). Here are highlights from MSNBC:

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WASHINGTON - Sales of new homes plunged in March to the lowest level in 16½ years as housing slumped further at the start of the spring sales season. The median price of a new home in March compared to a year ago fell by the largest amount in nearly four decades. The median price of a home sold in March dropped by 13.3 percent compared to March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.

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The dismal news on new home sales followed earlier reports showing that sales of existing homes fell by 2 percent in March. Housing, which boomed for five years, has been in a prolonged slump for the past two years with sales and home prices falling at especially sharp rates in formerly boom areas of the country. For March, sales were down in all regions of the country, dropping the most in the Northeast, a decline of 19.4 percent. Sales fell by 12.9 percent in the Midwest, 12.5 percent in the Midwest and 4.6 percent in the South.

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President Bush on Tuesday said the economy was not in a recession but a period of slower growth. However, economists who believe the country has fallen into a recession pointed to the string of declines in manufacturing orders to support their view.