July Home Sales Plummet: 2nd Recession Ahead?

New home sales nationwide plunged in July to their lowest level since the government started keeping track in 1963.

This follows Tuesday’s dismal report for existing homes and raises fears that the economy is poised for another recession – a so-called double dip.


New home sales dropped 12% from June and 32% from July 2009 to an annual pace of 276,000, the Commerce Department said Wednesday.


Analysts expected the April 30 expiration of two federal tax credits to curtail demand for homes later in 2010. But buyers clearly are spooked by unemployment concerns, even thought mortgage rates are at historical lows and homes are affordably priced.