Posted on 10/25/2006 7:35:46 AM PDT by pepsi_junkie
Sales of existing homes fell for a sixth straight month in September and the median sales price dropped on an annual basis by the largest amount on record, further documenting a lukewarm housing market.
The National Association of Realtors reported that sales of previously owned homes fell by 1.9 percent in September to a seasonally adjusted sales pace of 6.18 million units, the slowest sales rate since January 2004.
The median price of a single-family home fell to $219,800 last month, a drop of 2.5 percent from the price in September 2005. That was the biggest year-over-year price decline in records going back nearly four decades.
Housing, which had set sales records for both new and existing homes for five consecutive years, has been rapidly loosing altitude this year, as consumers were battered by rising mortgage rates, soaring energy prices and a slowing economy.
However, economists with the Realtors said they believed the housing decline could be hitting bottom.
"The worst is behind us as far as a market correction _ this is likely the trough for sales," said David Lereah, the Realtors' chief economist. "When consumers recognize that home sales are stabilizing, we'll see the buyers who've been on the sidelines get back into the market."
However, analysts said that the weakness in housing could last for several more months with a real upturn in sales not occurring until next spring.
Sales were down in all sections of the country except the South, which posted a small 0.4 percent decline. Sales fell the most in the Northeast, a drop of 3.7 percent, followed by the West, where sales were down 3.1 percent, and the Midwest, where sales fell by 2.8 percent.
The inventory of unsold homes, after climbing to all-time highs, fell for a second straight month, decreasing 2.4 percent, to 3.75 million unsold homes at the end of September, which represents a 7.3 months supply at the September sales pace.
Sales of single-family homes dropped by 1.6 percent to an annual rate of 5.42 million units while sales of condominiums fell by 3.2 percent to an annual rate of 763,000 units.
The 2.5 percent drop in the price of single-family homes pushed them down to $219,800 while condominium prices fell by 3.2 percent to a median price which was also $219,800.
Interest rates go up, sales go down.
The fed needs to start lowering the rate now. After 13 hikes we need to have 5-6 in a lowering cycle.
The Fed must not kill the golden goose.
And yet the 3 houses on my street that have gone up for sale all sold within a matter of a week or so.
I can't believe they didn't include that in their report.
Loosing? More quality from AP. It makes me wonder if in fact the south didn't have a .4% increase based on the wording.
Housing is a regional thing. In my neighborhood, houses are staying on the market for several weeks or months, and all of the ones on the market have "Price Reduced!" signs on them. I bought my house just over three years ago and we had to get an appraisal about a year ago, at which time it was appraised at 20% higher. 20% in 2 years is good, but it isnt as much as a lot of towns were getting. That's not sustainable. I'm hoping that because my neighborhood wasnt one of the skyrocket ones, it doesnt suffer as things continue to cool down.
Houses are a hot commodity in my area... the lack of housing is incredible, people will buy houses that are overpriced and not even fit for a meth lab.. it's quite rediculous.
I'm glad I bought out of town, though the resident real estate agent is near retiring and is dragging the university town prices to our little ~400 resident town, nothing is selling in our town, the prices are way to high for the market.
I got my house for 100K, down from 140K... elsewhere the resident house seller is trying to sell 100 year old farm houses for 1/4 million dollars... one place has been sitting for years...
>>The fed needs to start lowering the rate now. After 13 hikes we need to have 5-6 in a lowering cycle.
The Fed must not kill the golden goose.<<
Not necessarily: http://www.spiegel.de/international/0,1518,440054,00.html
Nothing like an objective opinion. Has anyone ever heard a realtor say, "This would be a good time to hold cash. Don't buy just yet."?
It's not all bad news.
This is a normal lag time for house sales -- this time of year. It heats up again in May. Most people are more concerned with holidays, the cold, etc., rather than moving locations. Winter makes for a hunker down frame of mind.
you've been posting for months how real estate was weakening, what do you have to say now?? Huh?
what? you were right? oh yeah, nailed it.
You ain't seen anything yet. Wait until Q1 of 2007. Prices are still falling on the west coast. Down about 3% now over the peak in 2005. But price still have another 35% + to fall. Oh, I'm sorry. You are one of those 'buy real estate now' groupies, eh? You might buy that little boxy La La Land bargain house. It has even been repainted. You might even get them to reduce the price about $ 100,000. But if you are smart, you will wait for foreclosures. Millions of people will find they are sol by the middle of next year. But the shake out is just starting. Wait until 2008.
I just sold my townhouse after 8 months on the market in MN. Woohoo! Were taking a loss, but at least were rid of it.
Asking price is not a measure of value. If you want to be honest, report the sales price if/when it sells. But you know that, and you don't want to be honest. You just want to pimp fear to drive traffic to your pathetic website.
Is that new police tape or a fence?
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