Home Sales Drop

We got some more bad news on the housing front this morning. The Commerce Department said that sales of new homes plunged 32% from April to May. Housing analysts blame it on the expiration of the federal tax credit for new home buyers. Why do these numbers interest me so much? Couple of reasons. First, I am obsessed with real estate...always have been, always will. I'm one of those awful people who goes to every open house possible just to see what kind of closet space my neighbors have. Second, I am renter. I dream of owning a house like the one pictured above. (Though that dream shatters pretty quickly when I think about the amount of Windex I've have to have on hand to keep those glass walls clean). A drop in home sales should translate into lower home prices, right? Should be good news for people like me. But I can't help wonder whether these weak numbers speak to the possibility of a double dip recession...which is bad news for everyone. I would love to have a regular segment about real estate on our show...what do current sales prices in So Cal tell us about the economy? What kind of hoops are buyers having to jump through in order to get a mortgage? If it's such a buyer's market, why do I still feel so priced out? Any thoughts on what we could call it?

(Photo Courtesy of Monkeyjenn/Flickr)

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