Homebuilders are slowing down construction due to the struggling housing market.
According to the U.S. Census Bureau, the sale of newly built homes has dropped to a five-year low, at around 511,000 for the month of July. The July census data also show that new homes actively under construction are at about 839,000, which would make it the first time in history in which U.S. homebuilders are building more homes than they are selling.
The continued pile-up for new housing inventory is imminent. About 78 percent of Americans are expecting a housing crash in the next two years, as revealed in a recent survey by Consumer Affairs. It also reported that 80 percent of Americans want a mild recession to occur, as the sentiment is leading to much more lower mortgage applications and lower home sales….