New Homes Slump Worsens

More alarm bells for the stumbling housing market rang as a government report on new home sales showed a bigger-than-expected drop in sales, along with a continued rise in unsold homes and a further weakening of prices in the closely watched sector.

New homes sold at an annual pace of 1.07 million in July, according to the Census Bureau report, down from the 1.12 million pace in June, which was also revised slightly lower than the original reading.

The pace of new home sales is now down 21.6 percent from year-earlier levels, with every region of the country showing double-digit percentage declines compared to July 2005.

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Homeowners Insurance    

When you are a new homeowner and want to insure your home you may take the advice of an insurance broker, but at the same time you should also have some elementary knowledge.    

How can I find the right homeowners insurance and the best insurance rates? The Internet is the best option to get the right homeowners insurance. You can find online homeowners insurance quotes and can make a comparative study to get the best deal.   To find the right home insurance rate it is recommended to contact all local insurance agents or brokers to know their norms and terms regarding their area of coverage. You can even request for an online home insurance quote. A comparison of all collected information will help you find the best homeowners insurance rates.    

How can I get a discount on the home insurance rate? There are several circumstances when an insurance company may lower your insurance rate:

1.      Some of the home insurance companies are associated with security companies. If you install in modern security facilities in your home like burglar alarms, home video cameras, fire alarms and deck-bolt locks to assure additional safety, the insurance companies might give you a discount on your home insurance rates.

2.      Smoking is the one of the main causes for residential fires. If all the family members are non-smokers then some insurance companies offer to reduce premiums.

3.      Some home insurance companies provide discounts for senior citizens. If you're 55 or over and you are a pensioner, then you are qualified for a discount of 10 to 15 percent.

4.      Buying a homeowners insurance policy and auto policy from the same insurance company can help you lower rates on your insurance.    

Home Sales Plunge in July

Sales of previously owned homes plunged in July to the lowest level in 2 1/2 years and the inventory of unsold homes climbed to a record high, fresh signs the housing market has lost steam.

The National Association of Realtors reports that sales of existing homes and condominiums dropped by 4.1% in July from June to a seasonally adjusted annual rate of 6.33 million. That was the lowest level since January 2004.

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Foreclosed Properties  

As some homeowners get squeezed by higher mortgage interest rates and a cooling real-estate market, many house bargain-hunters are turning their attention to foreclosures.  

They hope to get good deals by buying from homeowners who are falling behind on their mortgages or by buying after the lenders have seized such properties.  

Confirming the trend, online Web sites such as Foreclosure.com, Foreclosures.com and RealtyTrac.com, which list foreclosed properties and charge subscription fees, all report an increase in listings.  

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Waiting For Home Prices To Drop  

Convinced home prices will fall? So are a lot of other Americans.   Some - known as bubble sitters - are acting on their conviction. They're cashing out by selling their homes and renting, figuring they'll return to the market after prices have fallen.  

Bubble sitters also include those people who have never owned a home and are waiting to take the plunge, along with folks who are relocating and holding on to their cash until the market in their new hometown softens.  

Many experts have labeled the majority of U.S. housing markets either overvalued or severely overvalued, but is it wise to count on prices falling?