Home Sales Hit Slowest Pace in 5 Years:The median price of a home sold last month slid to $230,200, down by 0.6 percent from the median price a year ago. It marked the 12th consecutive month that home prices have declined, a record stretch
Vid...@tcq.net
Home Sales Hit Slowest Pace in 5 Years
Monday August 27, 10:30 am ET
By Martin Crutsinger, AP Economics Writer
Existing Home Sales Drop in July to Slowest Pace in Nearly 5 Years
WASHINGTON (AP) -- Sales of existing homes dropped for a fifth
straight month in July, falling to the slowest pace in nearly five
years, while home prices fell for a record 12th consecutive month.
The National Association of Realtors reported that sales of existing
homes dipped by 0.2 percent last month to a seasonally adjusted annual
rate of 5.75 million units.
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The median price of a home sold last month slid to $230,200, down by
0.6 percent from the median price a year ago. It marked the 12th
consecutive month that home prices have declined, a record stretch.
The deep slump in housing, combined with recent severe turmoil in
financial markets, has raised worries about a possible recession. But
many economists believe the Federal Reserve will ward off a full-blown
downturn by reducing a key short-term interest rate should financial
market conditions fail to stabilize.
The steep slump in housing has trimmed overall growth for the past
year and recently the economy has been shaken by spillover effects in
financial markets. Rising defaults in subprime mortgages have
triggered a serious credit crunch as investors have worried that hedge
funds and other big investors in securities backed by subprime loans
could suffer serious losses.
The 0.2 percent drop in July sales, compared with activity in June,
marked the fifth straight monthly decline and left sales 9 percent
below the level of a year ago. The sales pace was the slowest since
November 2002.
By region of the country, sales fell by 2.2 percent in the Midwest and
were unchanged in the South. Sales rose by 1.8 percent in the West and
1 percent in the Northeast.
The increase in the Northeast, which also saw the median home price
increase, was seen as possibly hopeful sign that the worst of the
housing downturn may be ending.
"The rise in sales and prices in the Northeast region on a fairly
consistent basis in recent months is promising because this was the
first region that underwent sales and price weakness after the boom,"
said Lawrence Yun, senior economist for the Realtors. "Now, it appears
that it will be the first region to climb back, indicating that other
regions could follow a similar path."
However, many analysts believe it could be months before housing
stabilizes because of the threat that rising delinquencies could dump
further homes onto an already glutted market.
The inventory of unsold homes rose by 5.1 percent at the end of July
to a record of 4.59 million units.
aero...@flight.net
>http://biz.yahoo.com/ap/070827/economy.html?.v=6
>
>Home Sales Hit Slowest Pace in 5 Years
>Monday August 27, 10:30 am ET
>By Martin Crutsinger, AP Economics Writer
>Existing Home Sales Drop in July to Slowest Pace in Nearly 5 Years
>
>WASHINGTON (AP) -- Sales of existing homes dropped for a fifth
>straight month in July, falling to the slowest pace in nearly five
>years, while home prices fell for a record 12th consecutive month.
>The National Association of Realtors reported that sales of existing
>homes dipped by 0.2 percent last month to a seasonally adjusted annual
>rate of 5.75 million units.
The new home sales figure was a nice guise under which Big Money could
shove 150 points down the throat of this laughable "market" on
Friday...Nice to see home builders finally discounting new homes,
which is the only reason sales rose...GM saw the same results when
they started giving cars away, but look where it got them....
Again, prices slide, meaning less equity, and in many instances, a
home value less than the combined 1st mortgage and 2nd (ATM machine)
mortgage...Some are even under water with their 1st.
"Folks will just refinance when their ARM adjusts" says the street
spin...I wonder where folks are going to come up with the cash needed
to offset the difference between their refinanced mortgage and the
value of their house?????
On another note, isn't funny how the NAZ miraculously "rallied" along
with the DOW, even though the durable goods data showed a DROP in
computer purchases??????
Goes to show that the massive breadth of this manipulation floats all
boats, even the one's with holes in them.......Just remember, they'll
sink faster once the pumps burn out......
alexy
>The median price of a home sold last month slid to $230,200, down by
>0.6 percent from the median price a year ago.
Wow! At that rate, they could decrease in value by almost 10% in only
15 years! Or duplicate the stock market drop of a couple of weeks ago
in less than ten years!
(Or maybe neither, since the median sale price of houses may not be a
good proxy for the change in value of houses.)
--
Alex -- Replace "nospam" with "mail" to reply by email. Checked infrequently.
Vid...@tcq.net
considering everything that i have seen from you is short term,
parochial thinking, i expected no less.
alexy
You are confused. It was you that talked about the short term--how
much prices had dropped in the last year. It was I who provided more
of a long-term perspective of the impact such a trend would have over
a 15-year period.
Vid...@tcq.net
very good alex. you can turn night into day. except you insinuated
that i was of course being nilly willy, and that falling home values
that you consider so small, are harmless.
but of course this is only the beginning, a few short weeks, no one
really knows how far values will drop.
so yes, it was a short term response, i expected no less.
Rich Hutnik
Unless there is a marked increase in median income for people, the
housing market is tanked for awhile. Globalization and open borders
has put downward pressure on wages, meaning that houses can't keep
increasing in prices. Also there will be tightening of requirements
for people borrowing, and that will also dry up demand. Shoot, maybe
illegals can pick up the slack. Maybe if you pack 7 families making
below minimum wage, they could afford a house meant for one family.
- Rich
FrediFizzx
news:1188278171.1...@r29g2000hsg.googlegroups.com...
> Unless there is a marked increase in median income for people, the
> housing market is tanked for awhile. Globalization and open borders
> has put downward pressure on wages, meaning that houses can't keep
> increasing in prices. Also there will be tightening of requirements
> for people borrowing, and that will also dry up demand. Shoot, maybe
> illegals can pick up the slack. Maybe if you pack 7 families making
> below minimum wage, they could afford a house meant for one family.
They have been doing that here in S. California for years. However,
most of them make quite a bit more than minimum wage and most are pretty
hard working folks.
Fred
Razor Face
"FrediFizzx" <fredi...@hotmail.com> wrote in message
news:5jhsqqF...@mid.individual.net...
And many other people are hard working, so please stick with the point.
Razor Face
"alexy" <nos...@asbry.net> wrote in message
news:5q96d31bmkvt0rru8...@4ax.com...
> Vid...@tcq.net wrote:
>
>>The median price of a home sold last month slid to $230,200, down by
>>0.6 percent from the median price a year ago.
>
> Wow! At that rate, they could decrease in value by almost 10% in only
> 15 years! Or duplicate the stock market drop of a couple of weeks ago
> in less than ten years!
>
> (Or maybe neither, since the median sale price of houses may not be a
> good proxy for the change in value of houses.)
Gosh Alex, you're right!!! Home prices will keep on going up 20% a year for
the next 50 years, even though no one will be able to afford them except the
rich CEOs you idolize so much.
You support outsourcing good middle class jobs to India. But that's okay --
the unemployed IT workers can just live off the rising equity in their
homes. It makes perfect economic sense.
After all, Bush said it, you believe it, that settles it!
alexy
>
>"alexy" <nos...@asbry.net> wrote in message
>news:5q96d31bmkvt0rru8...@4ax.com...
>> Vid...@tcq.net wrote:
>>
>>>The median price of a home sold last month slid to $230,200, down by
>>>0.6 percent from the median price a year ago.
>>
>> Wow! At that rate, they could decrease in value by almost 10% in only
>> 15 years! Or duplicate the stock market drop of a couple of weeks ago
>> in less than ten years!
>>
>> (Or maybe neither, since the median sale price of houses may not be a
>> good proxy for the change in value of houses.)
>
>Gosh Alex, you're right!!! Home prices will keep on going up 20% a year for
>the next 50 years,
How in the world could you conclude that? The article vid posted shows
a trend, that if continued, would cause a DECREASE in median house
sale price of 10% over the next 15 years. So how do you conclude that
they will go up 20% per year rather than down 10% per 15 years?
> even though no one will be able to afford them except the
>rich
What do you think will happen to median house sale prices if no-one
but the rich can afford to buy houses? It might have been too subtle
for you, but that was what I was referring to when I mentioned that
the median sale price might not be a good proxy for what is happening
to home values.
>CEOs you idolize so much.
>You support outsourcing good middle class jobs to India. But that's okay --
>the unemployed IT workers can just live off the rising equity in their
>homes. It makes perfect economic sense.
>
>After all, Bush said it, you believe it, that settles it!
Straydog said it, you believe it, that settles it!
alexy
>On Aug 27, 10:17 pm, alexy <nos...@asbry.net> wrote:
>> Vide...@tcq.net wrote:
>> >On Aug 27, 2:50 pm, alexy <nos...@asbry.net> wrote:
>> >> Vide...@tcq.net wrote:
>> >> >The median price of a home sold last month slid to $230,200, down by
>> >> >0.6 percent from the median price a year ago.
>>
>> >> Wow! At that rate, they could decrease in value by almost 10% in only
>> >> 15 years! Or duplicate the stock market drop of a couple of weeks ago
>> >> in less than ten years!
>>
>> >> (Or maybe neither, since the median sale price of houses may not be a
>> >> good proxy for the change in value of houses.)
>> >> --
>> >> Alex -- Replace "nospam" with "mail" to reply by email. Checked infrequently.
>>
>> > considering everything that i have seen from you is short term,
>> >parochial thinking, i expected no less.
>>
>> You are confused. It was you that talked about the short term--how
>> much prices had dropped in the last year. It was I who provided more
>> of a long-term perspective of the impact such a trend would have over
>> a 15-year period.
>> --
>> Alex -- Replace "nospam" with "mail" to reply by email. Checked infrequently.
>
> very good alex. you can turn night into day.
You give me too much credit. I certainly understand why you would
prefer that your statements not be exposed to the harsh light of
reality, but turning night into day is a tall order.
> except you insinuated
>that i was of course being nilly willy, and that falling home values
>that you consider so small, are harmless.
> but of course this is only the beginning, a few short weeks, no one
>really knows how far values will drop.
But the article that you posted provided no such speculation. It was
purely short-term--the decreases over the last year. If you had added
your speculation about what might ensue afterwards, I would have given
such speculation its proper due.
> so yes, it was a short term response, i expected no less.
Yes, a 15-year perspective on your comment about a one-year trend
definitely is a short-term response! And up is down, black is white,
in is out, ...
com...@webtv.net
the news to fit your political views.
A Liberal is "just a Communist in a Free Country" !
alexy
That seems very likely. While I wouldn't seriously suggest
projections off of the extremely short-term perspective provided in
the article vid quoted, I wouldn't be at all surprised to see housing
prices standing still or even decreasing slightly while waiting for
wages to catch up.
> Also there will be tightening of requirements
>for people borrowing, and that will also dry up demand.
But mainly on the lower end of the market, possibly creating a
disconnect between the median price of houses sold and the value of
houses.
Vid...@tcq.net
well said. free market economics is a race to the bottom. we are
witnessing it right now. it is not a over night process. so many short
termers are lulled. but if you follow the wage patterns, debt
appreciation, school and world wide patent deterioration, we are in a
race to the bottom.