Existing Home Sales Post Their Biggest Decline In 4 Years

Michael Snyder
End Of The American Dream
November 22, 2018

Things just continue to get even worse for the U.S. housing industry. 

New homes sales have been absolutely plummeting, homebuilder stocks have lost over a third of their value, and existing home sales just posted their biggest decline since 2014.  For years, we had been witnessing a real estate boom in the United States, but now that has officially ended.  It is starting to feel like 2008 all over again, and many of those that work in the industry are really starting to freak out.  The Federal Reserve has been aggressively raising interest rates, and it is having the exact same effect on the housing industry that it did just before the last recession.

It wasn’t supposed to be this way.  A supposedly “booming” economy was supposed to lead to a surge in demand for housing, but instead sales of existing homes had an absolutely terrible month in October

Sales of previously owned U.S. homes posted their largest annual decline since 2014 in October, as the housing market continues to sputter due to higher mortgage rates that are reducing home affordability.

And this certainly was not an anomaly.  Existing home sales have been down on a yearly basis for quite some time, and it doesn’t appear that things will turn around any time soon.

Just look at what is happening in California.  Not too long ago prices were soaring, but now a luxury estate has just sold for more than 50 percent off.

That would have been unthinkable just a few months ago.

Meanwhile, sales of new homes have been depressingly low as well.  As a result, homebuilders have been implementing extreme measures in order to get sales.  The following comes from Bloomberg

Ram Konara, a real estate broker in suburban Dallas, is raking in freebies this year: trips to Lake Tahoe and Santa Barbara in California, Cabo San Lucas in Mexico, and a dude ranch in…

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