Number of Unsold Homes Hits Record High

If the housing market is cooling off, which is becoming the general consensus, then watch for condos to start hurting first as people who bought them for investment purposes start dumping them before prices fall...which of course causes prices to fall.

WASHINGTON (AP) - The backlog of unsold new homes reached a record level last month, as sales slipped despite the warmest January in more than 100 years. The Commerce Department reported Monday that sales of new single-family homes dropped by 5 percent to a seasonally adjusted annual rate of 1.233 million units last month. That was the slowest pace since January 2005 and left the number of unsold homes at a record high of 528,000. Analysts viewed the new data as further evidence that the nation's red-hot housing market, which hit record sales levels for five straight years, has definitely started to cool.