The Worst September For Home Sales Since 1981

Even uber-bearish housing analyst Mark Hanson was taken aback by the shortfall in home sales this morning. Even he thought that the remaining homebuyer tax credit, plus all the other stimulus out there, would produce a rise in new home sales.

But no. September was the worst month since 1981.

Builders, of course, will use the number as evidence that the subsidy MUST remain in place, but at this point there’s probably no helping them. See, new homes compete for low-end homebuyers with foreclosures, and though we’re still limiting the number of foreclosures out there (through moratoria and whatnot) the wave is just enormous.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

housing moneygame-us