Pace of new home sales second slowest on record

New homes sold at the second-slowest pace on record in August, signaling that the housing market will remain a drag on the economy.

The second break in the secular downtrend within housing is a big concern for an over-leveraged, consumption-driven economy. The article characterizes this concern as a "drag". I would characterize it as an anchor. The dead-weight of housing ensures more bailouts and "save me" stimuli.

New Home Sales And Change YOY, SA


Home prices struggle while gold soars. The relative comparison illustrates an anchor-like drop to at least the 1980 lows.

U.S. Median Home Price (MHP) to Gold:


Source: finance.yahoo.com