A day after disappointing sales results for existing homes in July, sales of new homes sold last month fell the lowest rate on record, alarming economists. “The potential for the housing market to drag the economy back into recession is… rising,” said Celia Chen, senior director at Moody’s Economy.com.
According to the Commerce Department, new homes sales fell 12.4 percent from June to July to an annual rate of 276,000. That is 32.4 percent lower than a year ago. At the current sales rate, there is a nine month supply of homes. Economists had expected an annual sales pace of 333,000.
Sales of existing homes in July fell to the lowest level in 15 years, significantly worse than expected. Stocks fell after the news as it added to the growing concerns of investors about the pace of the nation’s economic recovery.
According to data collected by the National Association of Realtors, existing homes sold at an annual rate of 3.83 million units — 27.2 percent lower than the June level. Compared to a year ago, sales were off 25.2 percent.
Sales of existing homes in fell in July to the lowest level in 15 years, significantly worse than expected. Stocks fell after the news as it added the growing concerns of investors about the pace of the nation’s economic recovery.
A number of economic indicators are due out this week, including existing and new home sales, and 2nd quarter GDP figures — all are expected to plummet. Charlie Herman, economics editor for The Takeaway and WNYC Radio, is describing this as a "slowdown" this week: "Right now, we're in the slow days of summer. The president is on vacation and Congress is in recess," he says.
We look ahead at this week in news. It's the official beginning of shrimping season in Louisiana; Russia's grain embargo has just taken effect; the Obama administration tries to figure out how to approach mortgage giants Fannie Mae and Freddie Mac; a judge's ruling effectively bans planting genetically modified sugar beets; and the Congressional Budget Office will release its budget outlook.
Change comes to two businesses: The executive who steered General Motors out of bankruptcy is stepping down, and a Brooklyn pizzeria some say is the best in the city faces eviction. It's WNYC's Financial 411 -- our take on the economic news of the day.
The number of homeowners receiving a notice of foreclosure increased nearly 4 percent from June to July according to the online foreclosure tracking company RealtyTrac. One in every 397 U.S. housing units received a foreclosure filing last month. “Filings” covers default notices, home auctions and bank repossessions.
How do you explain the behavior of Steven Slater, the ticked off JetBlue flight attendant who literally slid off the job on Monday at Kennedy Airport?
The Federal Reserve took action Tuesday, in an attempt to keep the economic recovery from slowing down any further.
The American Folk Art Museum in Manhattan can't pay its debts, and is struggling to survive. It's one of many cultural institutions facing challenges in a tough economy when it comes to getting access to credit.
The nation’s payrolls shrunk by 131,000 jobs last month. That's another troubling sign that the recent economic recovery could be stalling.
Employers cut more jobs than expected in July as the government reported that the nation’s payrolls shrunk by 131,000 jobs. That's another troubling sign that the recent economic recovery could be stalling.
New York-based Barnes & Noble is up for sale.
Many automakers reported slight increases in U.S. vehicle sales last month. Is it a sign that consumers actually are willing to spend more despite continued worries about the economy?
Treasury Secretary Timothy Geithner was in New York City on Monday. He met with Mayor Bloomberg, and had lunch with a group of finance, retail, real estate and media executives.
We look ahead this week to birthdays, oil in the Gulf and unemployment numbers. On Wednesday, President Barack Obama turns 49; former White House correspondent Helen Thomas turns 90 on the same day. Besides birthdays, there will hopefully be another cause for celebration down on the Gulf coast: BP may have found a way to permanently seal the well that has gushed roughly 184 million gallons of oil into the Gulf of Mexico.
Starting later this month, color-coded grades based on restaurant food-safety conditions will begin appearing in prominent locations to the entrances of New York City’s nearly 24,000 eating establishments.