Today, Newspapers across the United States reported on the drop in home sales for May 2010. Los Angeles Times Reports Home Sales Slump. No, let’s call it what it is, a crash! Housing sales slumped to the lowest number recorded in the 47 year history that the statistic has been kept. Banks are more skittish about the recovery. That means a “second dip.” If we have a dip that is anything like the first one we are rebounding from, then we are in deep doodoo.
Service companies are feeling the pinch from stressed homeowners and business owners who are behind on payments and generally up to their necks in bills. Termite companies, as with most any company that trends with the housing market, are in deep trouble. These statistics show on the positive side, that stimulus, such as the housing tax credit, have helped to keep sales up. But propping up housing with deficit spending sows the seed for the next recession, as the deficit becomes harder to extract from. Also, stimulating the housing market is like having a clearance sale. Who wants to buy when there is no sale? All the serious buyers came when there was a sale to be had and now that there is no sale, well guess what? No buyers!