WORST NEW HOMES SALES SINCE 1981.. IN FACT, IT'S EVEN WORSE!!

US New Home Sales had the biggest drop since 1981.

New Home Sales data

HOWEVER, when adjusted for population, they were actually EVEN WORSE, as a very astute comment below reflects:

Housing starts actually lower than previous 1981 decline

To repeat this person's comments:

1980 USA population: 226.5 million ( ~228 million to approximate 1981)
2010 USA population: 309.2 million

1981: .338/228 = .001482 houses/million peeps or 1.5 houses per 100,000 peeps
2010: .300/309 = .000978 houses/million peeps or 1.0 houses per 100,000 peeps

[So, adjusting for population, this low is fully 33% under the 1981 low...

So.. that housing tax credit was all well and good, but it didn't put a bottom into the home sales market. That means, in order to clear out inventory, prices will have to come down EVEN MORE. And sadly, those folks who bought homes using that tax credit MAY actually find that EVEN THEIR HOMES will soon be under water soon.

Scrutinizer