Home Sales Crumple, Real Estate Prices Collapse: Is there a crash coming?

The figures for sales of new homes are really down for August and real estate prices have recorded the largest year-on-year drop in nearly 37 years!

This shows how the US housing market is still suffering and the mortgage crisis is nowhere near over yet.

Economist Pierre Ellis at Decision Economics in New York commented on the credit crunch and home loan crisis in the US housing market by saying:

“For the Federal Reserve, the question is whether this is worse than they really expected and whether it might well be a reason for them to do more pre-emptive easing,”

New single-family homes saw their sales fall a massive 8.3 percent last month and median house prices has also lost 8.3%

Market analyst Sam Kirtley of The Gold Prices Newsletter believes that this housing crisis is far from over: “We see a major real estate crash and recession approaching in the USA and although this current mortgage crisis may appear to be temporary, we think it is only the beginning. The US housing market has been over inflated by cheap and easy credit and been fuelled to extreme heights by the easy a of home loans to investors and consumers. The way in which we think investors can protect themselves from the coming crash is by investing in gold and gold stocks, as we write about on our website everyday.”

Do you think US house prices will continue to fall?

Or will we see a recover beginning in the real estate market soon?

Should investors be flocking to gold and gold stocks to protect their wealth in these uncertain times?

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