Existing Home Sales Fall Again

[MichaelC 160]

Eighth Straight Month of Decling Sales

 

Existing home sales fall for eighth straight month in October

By MARTIN CRUTSINGER

 

Associated Press

 

10:41 AM EST, November 28, 2007

 

WASHINGTON

 

Sales of existing homes fell for the eighth consecutive month in October, with median home prices falling by a record amount. Analysts blamed the worsening housing slump on the credit crunch that hit in August.

 

The National Association of Realtors reported that sales of existing single-family homes and condominiums dropped by 1.2 percent last month to a seasonally adjusted annual rate of 4.97 million units.

 

The median price of a home sold last month declined to $207,800, a drop of 5.1 percent from a year ago, the biggest year-over-year price decline on record.

Analysts blamed the October weakness on the fallout from a serious credit crunch that roiled financial markets in August. Banks and other lenders have tightened credit standards significantly in response to a soaring level of defaults, especially on subprime mortgages, loans provided to borrowers with weak credit histories.

 

The worry is that the credit crisis and a deepening housing slump could be enough to push the country into a recession.

 

In another sign of spreading economic weakness, the Commerce Department reported Wednesday that orders to factories for big-ticket manufactured goods declined by 0.4 percent in October. It was the third straight drop, the longest stretch of weakness in nearly four years.

 

Copyright © 2007, South Florida Sun-Sentinel

[<Steve> 82]

The median price of a home sold last month declined to $207,800, a drop of 5.1 percent from a year ago, the biggest year-over-year price decline on record.

Just as an observation.

This median price of $207K maybe more of a real number, and I am assuming this is a national average. I say that because in my neck of the woods we missed the boom & bust that has and is happening, and our median price is around $200K. My market is tied close to the economy. So, and I am just throwing this out here, if the median goes below $200K than properties maybe under valued resulting in a possible bounce back when things hit bottom and demand increases.

Just a theory.

[MichaelC 160]

Steve, yes, that median price is the national average. And your theory is a sound one. It's the way the stock market works, for example. The price of a particular stock drops low enough until it is perceived to be a bargain, and then the buyers step in and drive it back up. It's the same way with the housing market. Prices need to fall low enough so buyers are convinced they are getting a bargain. Once that happens the market psychology shifts and prices begin to rise again. Of course, it is much more gradual than happens on Wall Street.

[phil43 0]

The median price of a home sold last month declined to $207,800, a drop of 5.1 percent from a year ago, the biggest year-over-year price decline on record.

Just as an observation.

This median price of $207K maybe more of a real number, and I am assuming this is a national average. I say that because in my neck of the woods we missed the boom & bust that has and is happening, and our median price is around $200K. My market is tied close to the economy. So, and I am just throwing this out here, if the median goes below $200K than properties maybe under valued resulting in a possible bounce back when things hit bottom and demand increases.

Just a theory.

 

Steve,

 

Where are you located...just out of curiosity? We can use you as a barometer for the housing recovery

 

Phil

[-Tony- 0]

it is much more gradual than happens on Wall Street.

 

Dang are you sure, markets up 500+pts in 2 days.....well who thinks the fed will drop interest rates

[-Tony- 0]

This year we have had an appreciation of 7%, last year 4%, and the year before 4%, typically it is 6%,

 

So............Ahhhhh what part of NC do you live in.....? Just...curious