Home Sales Seeing An All Time Low In U.s!

By Author: Sadhana Dhanyal
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For the month of February, the Commerce Department has revealed a fall in sales of new homes in the US. According to the Commerce Department, new single family home sales fell by 2.2% on the month to a seasonably adjusted annual rate of 308,000 units - the lowest since records commenced in 1963.

The fall represented the fourth consecutive fall in new home sales and was much lower figure than economists had expected. It cannot be ruled out that the advancement in the housing sector is crucial to the development of the economy. This is crucial to the recovery of world's largest economy. However, the house prices in the US continue to fall in the face of consumer worries about the strength of economic recovery due to high unemployment.

Unemployment is affecting almost every sector adversely. It is making an adverse reaction on the economic status of the various countries. Recession has affected almost every sector adversely. It is taking a toll on people's lives by bringing down the chances of being employed. When unemployment steps in, then people lose their ability to purchase things and lead a normal financial ...
... life.

The economic recovery is set on the number of people being employed and contributing significantly to the successful economy. Hence, the significant issue that needs to be addressed is unemployment. If this issue is tackled well, then it can be said that economy can be set on a positive score.

It has been revealed that the figures come just a day or so after the National Association of Realtors (NAR) revealed a fall in sales of previously owned homes in the US for the month of February. Again, recession is known to be the major cause of this sector falling down. The industry body has state that sales fell 0.6% in the month to an annual rate of 5.02 million units (an eight month low), down from 5.05 million the previous month.

Moreover, February's fall is believed to be the third consecutive month that sales had declined. It has raised concerns that the market may be heading towards a double dip in both activity and prices. The government has been putting all its efforts to make good of the situation. However, the situation is not improving. The condition of the housing market still remains poor.

This, in turn is affecting the economy adversely. It is true that the housing sector is contributing towards the development of the economy. However, if the current economic continues to proceed this way, then there is little hope that the economy will improve.

Sadhana Dhanyal,content developer. For more information: Fast Secured Loans


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