Is there further economic trouble ahead? If you pay attention to the sales of new homes and you see that sales of new homes have dropped to the slowest pace in over seven years you probably think so.

“New-home purchases fell to an annual pace of 795,000, an 8.3 percent decline from July, as the number of months needed to sell off builders’ inventories rose to the highest level since March, the Commerce Department reported yesterday.”

“The median price for a new home was down 7.5 percent from a year earlier, to $225,700, the steepest monthly price drop since December 1970.”
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