Home sales plunged in July, according to the National Association of Realtors.  The loss in sales was somewhat expected as the federal tax credit finally ended (under contract by the end of April) and given the job losses of recent months.  However, the degree that sales fell was unexpected – to its lowest level in 15 years. MSNBC.com reports,

July’s sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.

The question is, how long until a steady housing recovery?  While not an economist, I’d argue that the housing recovery will solely depend upon recovery of the job market.  With first-time unemployment filings hitting 500,000 last week – the worst report for the year – there’s still a lot farther to go for a full recovery.  Until people feel confident in their jobs being secure, the likelihood of major purchases like real estate and cars will be low.

While there is some housing activity, I expect the recovery to stall for another six months as we get through the dark winter months.