Storm Coming for Home Resales

And it gets worse. Previously owned home sales dropped in April. The supply of unsold property has reached record highs. The median home price dropped 8% from last year at this time. And with the conditions out there the way they are–falling home prices, tighter lending restrictions, higher foreclosure rates, and the economy, it’s just going to keep on going down.

The benchmark 10-year note yields dropped to 3.88%, down from 3.92%.

Home resales are supposed to fall 1.6% according to forecasts, for a total of 4.55 million, the highest on record. According to William Cheney, who is the chief economist at John Hancock Financial Services, we’re just getting back to normal after ‘an unrealistic run-up of prices…”

You’re telling me.

Existing home sales make up the bulk of home sales in the U.S., roughly 85% of sales. New homes make up the rest.

And there are a lot of new homes on the market–especially if you live in Florida or California. Good luck.