New home sales at 12 year lows in US ... is the housing market indicating a recession?

Yes, I believe we are going through a mild recession currently, and may be on the brink of a major one. Most folks don't realize that construction in general is the second largest industry in America. Agriculture is #1. So declines in spending in the construction sector is a very good barometer as to how the American economy is doing. I've been in all types of construction for twenty years and seen my profits drop to zero. just working for wages anymore. There are many contributing factors. Cheaper labor from south of the border is key, Mortgage fraud is so prevalent lately, Oil and gas prices have affected most familie's ability to purchase new homes as the costs of materials, shipping, and labor overall have increased. Most folks have just been priced out of the market. With the exception of projects devoted to Low and Upper class incomes, middle America, the largest population of spenders, just can't do it right now.

Youn querry is in the investment section. If you're thinking of purchasing investment property, now is a good time if you want to be a landlord. Buy existing homes or multi-family units. The number of foreclosures has brought property values way down in many parts of the country. So, you can get very good prices on rental type properties. Rental rates haven't changed much, largely they've increased. When the housing market improves, and it will, you can flip your rentals and use the profits for other investments that interest you more.

Good luck to you.

I was just watching tv (CNN) and it said we have still not hit the low. Don't sell your house right now. It's a good time to buy though.

The real estate housing market is clearly crashing and will continue to crash in 2008. You will see a nationwide increase in foreclosures in January 2008, and there will be an implosion around August-September when 2 million sub-prime mortgages reset at unaffordably high new interest rates.

If you are a buyer, then wait until 2009 because the bottom has yet to be reached.

I think you haven't seen anything yet. The Case-Shiller index is something to take seriously and not deny away. http://graphics10.nytimes.com/images/200...

That is an objective analysis of 20 large metropolitan areas since 1890 (no typo). If you look at the last 5 years, when houses have gone up 74% but personal incomes have gone up only 15% and rents have about kept up with rents, house prices have a lot more to fall. We could be in a recession that lasts 3 years, but houses will probably not reach bottom until 2012.

The Recession is Here! Look at ALL the numbers. Not what the media tells you.

The housing market is not indicating a recession.....rather it may be the primary cause of a recession.

Among many other things, yes.