Homes aren’t selling and construction on new homes is slowing.

• The stalling housing market can be attributed to global economic turmoil, falling stock prices, and slow labor markets.
• Signed contracts in May and June have fallen dramatically.
• Despite low mortgage rates, tighter lending standards are preventing buyers from getting a loan and purchasing a new home.
• The two major issues in the job market are that there are too many homes and not enough demand.

Facts & Figures

• An unprecedented number of homeowners owe more than their homes are worth.
• Demand for mortgages is at a 14 year low.
• Last week, the average rate on a 30-year fixed-rate mortgage was 4.57%, which is the lowest its been since 1971.

Best Quote

“The sellers think the market’s coming back. They’ve tacked on an extra 5 to 10 to 15%. The buyers aren’t going for it. It’s going to feel like a double-dip because sellers are going to have to lower their prices” – Jim Klinge, a real-estate agent in Carlsbad, California

Tags: economy, home sales, housing market, new homes, real estate