The Department of Commerce released figures this week on the number of homes sold and the average prices. Unfortunately for Builders it seems that the massive new home rebates offered by the Obama Stimulus Package are not stabilizing prices or increasing sales.
Down to 426,000 units although slightly higher then previous months July fell short of expectations.
The average price of a home also fell 11% from $221,000 to just over $195,000 this was the largest monthly drop in home prices since 1963.
In addition to new homes not being sold there is now a concern about currently mortgaged homes falling into default.
Unemployment is reaching a recent all time high and although there was a slight fall of last week in reported numbers the result is not from people finding employment but falling off the books.
KB Home the second largest manufacture in new homes posted a 66 million dollar loss as its stock fell over 10% from the news.