Posted on 11/20/2006 9:47:58 PM PST by GodGunsGuts
AP Home Sales Plummet in 38 States in 3Q
Monday November 20
By Lauren Villagran, AP Business Writer
Third-Quarter Home Sales Plummet in 38 States During the Summer; Home Prices Also Tumble
NEW YORK (AP) -- The feeble U.S. housing market showed more frailty when third-quarter home sales plummeted in 38 states, hitting Nevada, Arizona, Florida and California particularly hard, government data showed on Monday.
The once-booming real estate market's persistent weakness over the past year has reined in expectations for economic growth but hasn't been severe enough to offset a rising stock market, lower gas prices and improved consumer expectations.
The National Association of Realtors reported Monday that sales of existing homes fell in 38 states during the summer. Sales retreated to a seasonally adjusted annual rate of 6.27 million units nationwide, down by 12.7 percent from the same period a year ago. Nevada, Arizona, Florida and California led the declines.
Home prices also dropped: The realtors' survey showed that the midpoint price for an existing home sold during the summer dipped 1.2 percent year over year to $224,900. Some 45 metropolitan areas saw home prices decline.
Meanwhile, the latest report of building permits showed the slowest pace of annual growth in nine years in October. Housing construction slid sharply as builders tried to curb swelling inventories of unsold new and existing homes.
Stuart Hoffman, chief economist at PNC Financial Services Group, said he thinks the housing market still hasn't reached its low point.
"I think the permits numbers point to yet another flight of stairs down on housing before we hit the basement," he said. "On the other side, stocks are rising, consumer confidence is good and jobs are rising. Those factors are keeping this decline in housing contained."
A closely watched indicator of future economic activity release Monday provided further evidence of that trend.
The Conference Board, an industry-backed research group based in New York, reported Monday that its Index of Leading Economic Indicators rose 0.2 percent in October. Increased real money supply and improved consumer expectations helped offset the sharp decline in housing permits and weaker vendor performance.
"The economy is growing more slowly, but we have yet to have weakness spread beyond housing and motor vehicles to such a degree that we need to fear the proximity of a hard landing," said John Lonski, chief economist of Moody's Investor Service, referring to when the economy turns from growth to a recession.
The housing market slowdown has weighed on the leading indicators index this year. But all told, strengths and weaknesses in the leading indicators have been roughly balanced, according to the Conference Board report. The index stood at 138.3 versus 139.1 in January -- its peak so far this year. The index has declined four of the last seven months.
The Conference Board's labor economist, Ken Goldstein, said the October index suggests "the economy is unlikely either to reheat or to get significantly cooler."
"Instead, the kind of slow growth now being experienced could continue right through the winter and into the spring," Goldstein said.
In another sign of moderating economic growth, the Federal Reserve held its benchmark interest rate steady last month at 5.25 percent for the third straight session. The Fed had raised interest rates 17 times beginning in June 2004 to stave off inflation, before halting its campaign of credit-tightening in August.
"Maybe some of the illegals will go home."
We can only hope.
Not to worry, the ILLEGAL's will bail US out. Blackbird.
Boy, Nassau is almost off the charts. Meanwhile Syracuse is dead as a doornail.
Now Bernanke is going to cause stagflation? How, with his deflation fighting helicopter?
I thought Bernanke dropped inflationary money from a helicopter?
I thought we were at war with Oceania, but here, all this time, we were at war with Eurasia!
My bad.
When the time comes, the watch-phrase will be pushing on a string.
Still having a difficult time reading, I see.
Home prices also dropped: The realtors' survey showed that the midpoint price for an existing home sold during the summer dipped 1.2 percent year over year
Prices did not plummet 12.7%. LOL!
Or maybe your headline was wrong...which doesn't surprise me, you're off on just about everything. Don't you grow tired of being proven wrong over and over?
Not true, of course. But I probably don't share your understanding of the phrase since, as I said, you are wrong on pretty much everything.
I was talking about sales. Read the headline, Toddler.
Making no sense as usual I see. Your lack of a point makes you a very dull person, Pedro.
That was obvious when I saw your earlier misunderstanding of the nickname "Helicopter Bernanke".
So sales down 12.7% is plummet and a 1.2% drop in prices is a bust. Got it Gigi.
Sorry you don't understand the reference. But then, you've never been much for reading comprehension, or even reading itself.
I doubt it.
Nope they won't do away with the stories. Instead the MSM will slant it to say how this drop in pricing is helping housing become more affordable to middle-income, low-income, and minority citizens. The only people to lose money will be evil Republicans who had over priced the housing market because they are greedy.
If Republicans had stayed in power, the story line would have been how grandma and grandpa Jones had lost all of their life savings in the housing market because of evil rich tax cuts.
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