The pace of new home sales in the U.S. were down 35 percent on a year-over-year basis last month (“the lowest annual rate since the 1991 recession”) led by a 36 percent drop from July to August in the West.
Lennar Corp., the second-largest U.S. homebuilder, this week reported its sixth straight quarterly loss and said the government must take measures to boost home prices that are down by nearly a fifth from their 2006 peaks.
“Consensus is building that falling home prices are not only detrimental to the economy at large, but in order to repair our failing financial system we will have to stop the decline,” Chief Executive Officer Stuart Miller said.
No word on whether or not Mr. Miller would be willing to help fund such government “measures” by donating the record monies earned by Lennar prior to said decline.
∙ U.S. Economy: Home Sales, Durable Goods Orders Drop [Bloomberg]