The “Wild Card”
A recent Bloomberg News poll of economists showed a decline in existing home sales to an annual rate of 6.20 million units in August from 6.33 million in July. A decline in sales of new homes, to an annual rate of 1.04 million units in August from 1.072 million was also noted.
With interest rates holding steady, intense pressure may be off the housing market. But many are taking a cautious wait and see position. The data coming out of the industry continues to suggest a downturn that may level out as early as 2007.