Pending home sales fall 4.7 percent (Figure lower than expected as market troubles continue)

[Pale Blue Dot]

Source: MSNBC

WASHINGTON - The National Association of Realtors says pending U.S. home sales dipped in May as the housing market continues to struggle.

The group's seasonally adjusted index of pending sales for existing homes fell 4.7 percent to 84.7 from an upwardly revised April reading of 88.9. The index was 14 percent below year-ago levels.

Wall Street economists surveyed by Thomson/IFR had predicted the index would come in at 87. The index, which sunk to a record low of 83 in March, stood at 98.5 in May 2007.

Read more: http://www.msnbc.msn.com/id/25586058/

[MannyGoldstein]

1. The Good News Is That Housing Prices May Become Affordable Again

Compared to a median wage, the price of a house has doubled in the past 40 years - which is the reason why we now need two workers in each family to lead a "middle class" life, while we used to need only one.

On the other hand, so much in the economy is based on housing prices being stable, or continuing to skyrocket. The underpinnings are being pulled out, and the consequences could be very, very nasty.

So... affordable housing, if we can survive the markdown.

[shraby]

4. Don't forget Manny that cars in the

1960s and early 70s cost around 4,000. After the gas crunch they then started charging 12-16 thousand for a car. Meanwhile the households needed 2 people working to be able to afford gas and a car..not to mention the cost of housing jumped.

[MannyGoldstein]

6. $4,000 in 1970 = $22,000 today

http://www.westegg.com/inflation/

[Voltaire99]

2. The even better news: the McMansion is dead.

Sorry, GOP swine. Your ersatz castles are soon to become multi-family dwellings for the working poor.

First, I'm afraid we'll have to shave another 30-40% off those prices. Hee hee hee hee.

[pattmarty]

3. "Even" better than that, the REPUBLICANS are dead.

[cliffordu]

5. Yep.

[pattmarty]

7. Yeah, lower than expected. Watch, next month they will........

....release their "revised" figures (how in the hell are figures revised?) on a Friday at 8 PM showing that the figure actually was 10.2 %. We have all seen this before in all the "official" government figures.

[boomerbust]

8. Now we need more regulation?

Now that the corporate cowboy will ride off into the sunset with his saddlebags full of ill gotten cash we need more regulation. This country has been had on a level never seen before!