The housing market, which has been slowly recovering from the recession, took an unexpected hit in July sales for single-family homes.
Experts had predicted that sales of new single-family homes would increase slightly in July; however, Commerce Department numbers showed that sales were down 9.4 percent from June numbers as well as 8.9 percent year over year, Reuters reported. The housing market is short on properties, land and labor, slowing down its growth and spiking housing prices.
The fall to a seasonally adjusted annual rate of 571,000 units last month put the sale of new single-family homes at the lowest level since December 2016, while the percentage drop from the previous month was the largest since August 2016.
On radio Wednesday, Stu pointed out that the economists predicting July’s housing sales could have known that this was going to happen – if they listened to the show every day.
“The data point they didn’t have at the time was to know that I was going to buy a house,” Stu said. “So if they knew I was purchasing a house in that month, they would have known the housing market was about to collapse.”
Glenn added that maybe people shouldn’t follow their advice. “If you just do the opposite of whatever we tell you to do, America would be fixed,” he joked.