Pending Homes Sales Decline. Again

by Laura Ehrenberg-Chesler on May 27, 2011

in Banks,Credit Crisis,Economic Indicators,Residential Real Estate

The pending home sales numbers were released today.  The data showed a 12% decline, while economists were expecting a decline of 2%.  This number represents the latest sign that the housing industry is still struggling to rebound.

It has been a while since we have blogged about the housing market and potential solutions to the challenges faced by all those involved, including many aspects of the U.S. economy.  From our vantage point, the housing market cannot find a clearing price for housing, until the banks are willing to take write downs,  foreclose on homes, and allow able and willing buyers to find the price they can afford.

The operative word in the aforementioned sentence is “able”.  We need to make homes available at true market prices, to those individuals who have saved, and have at least a 20% down payment.  Sounds old fashioned, and it is.  Good, old fashioned, sound finance.

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