U.S. Existing Home Sales Fall to 15-Year Low

The National Association of Realtors just released a report showing that sales of previously owned U.S. homes catastrophically dropped in July to their lowest pace in 15 years. This definitely calls into question the government touted prospects of a quicker economic recovery in the nation. The figures show that existing home sales dropped a record 27.2% from June to an annual rate of 3.83 million units, which is the lowest rate since 1995.

The realtor’s report suggests that home prices should fall even faster, which could tip the economy back into a full blown recession.

Why the sluggish purchase rate? Because “millions of people do not have jobs; millions of others work only part time, millions more work fulltime but make very little money; and additional millions fear losing their jobs.”

With economic certainty grabbing the nation and prices still too high, few people are home buyers despite record lows in interest rates. With home sales falling, the inventory of existing homes for sale rose 2.5% in July to 3.98 million units from June. This is double the six to seven months supply that is considered normal and healthy for the nation.

Just another reason to fear the double dip.