Sales of new homes, plunging to their lowest level in more than 12 years, were weaker than forecast last month - leaving the market glutted with unsold homes and pointing to more trouble ahead for the battered housing market.Other than reading articles on the state of the economy, I have no particular expertise in evaluating economic trends.
However, as a worker in the construction business for the past 23 years, I have seen the trend where housing declines a few times before. Generally those periods have been tight and money woes were greater. Employment opportunities were tighter, and the mood of the country was conservative with respect to money, in the sub elite classes. Housing and construction seem to be on the leading edge of the economy. When they struggle, the rest of the iceberg follows.
The worst period in my recollection was in 1990, the first shock and awe period. Money to invest in home projects was not there. People were afraid to invest even in home repairs. This present period does not seem quite at that level. How it will flesh out over time is a different matter.
Personally, I try to simplify, reduce and eliminate debt, save a little more, generally live small, and broaden my interests.
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