New Home Sales

I was checking out some of the economic numbers that were released today. I must say new home sales didn't surprise me at all. A record number of "for sale" signs through out the country. If your house doesn't sell in 30-45 days then reduce the price by thousands (like 10 or 20k) below the next comparable home. Can anyone remember CSCO when it was in the $70's?

New Home Sales, Durable Goods Orders Dip

WASHINGTON - Sales of new homes dropped in July by the largest amount since February while the inventory of unsold homes climbed to a record high. Piling on more proof that the housing boom is over, the
Commerce Department reported Thursday that new home sales fell by 4.3 percent last month to a seasonally adjusted annual sales pace of 1.072 million units. The decline was the largest since an 11.5 percent plunge in February.

Sales of both new and existing homes set records for five consecutive years as the housing industry enjoyed a boom powered by the lowest mortgage rates in four decades. But rates have been steadily rising this year as the Federal Reserve tightens credit conditions as a way to slow the economy and keep inflation under control.

Analysts expect home sales to drop by some 10 percent this year.