As if we need even more evidence the housing market is built on sand, the June housing sales showed a decline of 5.1%, indicating a deepening slump.
What's worse is that banks are selling more homes than developers, meaning the banks are shedding themselves of bank-owned properties (meaning foreclosed homes). When banks do that they'll sell them for lower prices in order to be rid of them, driving down real estate prices in general. That will sap even more equity from present homeowners, putting some of them upside down on their mortgages as any equity they had has now disappeared.
How is this supposed to be good for the economy?
