California home sales hit new low in July
August 17, 2011
California home sales dropped to their lowest level in 16 years last month as potential buyers held off purchases because of unstable markets and fears stemming from the debt ceiling debate. [Business Week.com]
An estimated 34,695 new and resale houses and condos were sold statewide last month, an 11 percent decline from June and 1.4 percent decrease from July 2010, according to San Diego-based DataQuick.
California home sales dropped to their lowest level for the month of July since 1995 and the second lowest since 1988, when the firm’s statistics begin.
DataQuick analysts attributed the decline to heightened economic uncertainty in July, when would-be buyers and sellers watched the political drama over the debt ceiling unfold in Washington.
“More people were getting cold feet as news on the economy worsened and people worried about the possibility of the nation defaulting on its debt,” said DataQuick analyst Andrew LePage. “There were plenty of reasons for some people to retreat to the sidelines as the future becomes less certain.”