Sales of new and existing homes in the U.S. are at depressingly low levels. For example, during the month of May sales of new homes in the U.S. declined to the lowest level ever recorded. Yes, you read that correctly. The U.S. Department of Commerce began tracking sales of new homes back in 1963, and since that time the number of new homes sold has never been as low as it was in May.
Not only that, but existing home sales (which had been faring a bit better) are also showing signs of serious decline. In the month of July, sales of existing homes in southern California fell nearly 22% from a year earlier. In Austin, Texas sales of homes declined 25% from a year ago in the month of July. The truth is that home prices are still way too high. As prices begin to decline that should help home sales a bit, but the truth is that the days of the real estate boom are gone and they not coming back.