12/28/2007 1:35 PM
New-home sales in the US fell 9% in November from October to a seasonally-adjusted annual sales pace of 647,000, the US Commerce Department reported December 28, 2007. Economists were predicting November 2007 new-home sales to decline by only 1.8%. Over the last 12 months, new-home sales in the US have plunged by more than 34%, the biggest annual drop since 1991 (i.e. under Bush 41).
"I think you can classify what we are seeing in the housing market as a crash," said Mark Zandi, chief economist at Moody's Economy.com, according to the AP. "Sales and home prices are in a free fall. The downturn is intensifying."
Fed by the persistent lack of federal regulation in the mortgage market, the housing debacle has significantly increased the odds that the US economy will soon fall into a recession, the second one under Bush 43. We recall that his daddy presided over only one recession.