Like a rock
, in fact - the largest hit the housing market has taken in a decade. I guess the real question is - what does this mean for the rest of the economy? Have we simply gotten to the point where everyone who wants and can afford a house has purchased one, and will now be looking to spend their money elsewhere? That doesn't seem likely, and it's not like prospective home buyers will simply plop down six figures on some other purchase. Will this slowdown help to ease the drop in housing sales that's sure to come on the heels of additional interest-rate hikes? Quite possibly, yes. Better for this to happen now than at the same time as a large rate hike. Is it an indicator of more overall bad news? That's not easy to assess - after all, last quarter showed some pretty good growth in the economy as a whole.
This is slightly interesting:
The average price of a new home dipped to $268,000 last month, the lowest since
September. And the median price was $206,000, the lowest since December 2003.
Dang, man - $206K
is the median price for a new home? That is simply insane. With the current income levels in this country, I can't imagine this is any in way sustainable, which, uh, seems to be the case.