Posted on 03/24/2006 9:19:33 AM PST by loreldan
Sales in February drop more than expected, as median price falls and supply grows. Is the real estate bubble bursting?
NEW YORK (CNNMoney.com) - New home sales fell more sharply than expected in February -- and along with them, the price of a new house -- in the latest signs of a slowdown in what had been a white-hot housing market.
Sales sank 10.5 percent to an annual rate of 1.08 million homes in February, from the revised rate of 1.21 million in January, the Census Bureau reported.
The report also showed a drop in the median price of a new home from a year earlier, to $230,400, down $6,900, or 3 percent from February 2005. Half of all homes sold for more than the median and half for less.
While it's not uncommon that prices fluctuate month to month, a year-over-year decline is far less common. February also marked the fourth straight month-over-month decline in median price since the record of $243,900 in October. The current median is 5.5 percent below that record.
Economists surveyed by Briefing.com had forecast that new homes would sell at a 1.21 million pace in the most recent period, but that would have been down from the previously reported 1.23 million pace the month before.
Robert Brusca of FAO Economics said it's not too soon to wonder if there has been a bursting of the so-called "housing bubble" of recent years, when prices and sales kept rising.
(Excerpt) Read more at money.cnn.com ...
No bias here...
Thank goodness! We're finally going to Hell in a handbasket! It's about time! [/cnn]
Gee .. sure looks like CNN is happy about this news
Not even trying to hide it! If they had used the word 'finally' - maybe. But the words 'at long last' signify a longing on the author's part...
I'm thinking about letting my subscription to BusinessWeek lapse as well. Seems most every issue has an article about how there ought to be more government controls in place for business practices, instead of less.
I'm guessing I'll switch to Smart Money (FOX).
Maybe one day this housing bubble will burst.
Then this country can relearn the value of working for a living instead of borrowing for a living.
For use in 2009: "GW Bush finally ends term as President"
Buying opportunity
Everyone I know works damn hard, and they also have a significant investment in a home. At least you'll be happy if the market tanks.
If this country were truly prosperous, maybe they wouldn't have to work so hard.
They should be thankful prices don't go up. All it does is grow their property taxes and give them no way to "move up".
Howard Ruff, last night on Coast, urged easing out of the housing market and into gold and silver. He sounds good, BTW, which was explained when it was revealed that he is an operatic baritone.
Actually many first time homebuyers were hoping for the exact same thing and not because they are liberals.
I agree to an extent. I'm not assuming we'll see much appreciation over the next few years. In fact, I wouldn't be surprised if we see some depreciation. However, I sure don't want to see the bottom fall out of the market. I think some people missed out on the boom and now hope to see those who benefited pay a hefty price. This is a very strange attitude, IMO.
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