U.S. Housing Market Remains Weak
The National Association of Realtors released its most current report on pending home sales; it was utterly dismal. April witnessed a contraction from March of 11 percent; year-on-year pending house purchases fell by 26.5 percent. It must be recalled that a year ago the U.S. housing market was already in feeble shape.
These numbers confirm that America’s residential housing market remains in pathetic condition. This massive share of U.S. economic activity, the faltering of which triggered the ongoing global financial and economic crisis, remains in pathetic condition. With no recovery in sight-and it must be recalled that housing is typically the leading edge of a real economic recovery from a deep recession, there is no clear path towards healthy economic metrics. This sobering statistic, in conjunction with other tepid economic indicators, including a weak employment market, highlights the fragility of the U.S. economy. At this point, it is only massive government deficits, projected at more than $1.6 trillion for the current fiscal year, that has prevented a continued massive contraction in overall economic performance in America. And, as I have pointed out before, massive public debt is no viable strategy for creating long-term sustainable economic growth.
