It seems that despite the current state of the U.S. economy, a number of forgotten economic issues are still affecting many Americans. According to recent reports, pending home sales have dropped to a record low, with the decrease being even worse than during the financial crisis back in 2008.
The decrease in home sales, if it is anything to go by, has been staggering. Reports indicate that purchasing activity is down 16.8 percent from a year ago, as data suggests. Currently, home sales have only surpassed a reading of 100 twice in the last two years. This has provided a grim outlook for the real estate industry over the last few months as fewer and fewer people are able to afford to buy a home.
The reason for the decrease in pending home sales likely has to do with the current economy. With unemployment rising and wages staying the same, many are unable to budget for the down payments needed to purchase a home. Additionally, a recent lack of consumer confidence, coupled with low mortgage rates, might also be creating a difficult environment for those looking to purchase a home.
Unfortunately, the current state of pending home sales could only worsen in the coming months. If the trend continues, it will likely create a ripple effect throughout the economy. By having fewer sales of existing homes, this will trickle down into the building industry as fewer new homes are constructed. Overall, this affects all areas of the economy, making it difficult for many industries to continue to grow and provide opportunities for people.
As we look towards the future, it will be essential to ensure that the pending home sales situation does not continue to worsen. By finding ways to make homes more affordable and increase consumer confidence, the housing industry can return to more prosperous times. With millions of Americans affected, this is a necessary effort in order to create a more stable economic environment.
