Existing Home Sales Drop 20%

Monday, December 31, 2007 | 10:30 AM

First, the bad news: Housing is still a mess, and is likely to be a drag on the consumer spending and the economy in 2008. Year-over-year sales dropped 20% from November 2006.

However, I am going to surprise a few people, and point out that this single month's report actually has some good housing news in it:

- Purchases rose 0.4%;

- October sales were revised upwards;

- Median home price fell 3.3 percent.

- Existing homes for sale fell 3.6% percent to 4.27 million. That's 10.3 months' supply versus 10.7 in October.

The most astonishing piece of news in the NAR release was this dollop of reality that seemed to have accidentally crept in:

“Inventory is still high, and further reduction in prices may be required in some areas to induce buyers back into the market”   

-Lawrence Yun, NAR chief economist.

Of course, like a junkie, they just can't help themselves, going back for another hit of that sweet, sweet shit:

“Near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that’s good news because it’ll be a further sign that the housing market is stabilizing,”

Sure it will.  Once, crack, head, always a crack head  . . .

>




Source:
Existing-Home Sales Rise in November, Market Likely Stabilizing   
NAR, December 31, 2008
http://www.realtor.org/press_room/news_releases/2007/ehs_dec07_ehs_rise_in_november.html

Monday, December 31, 2007 | 10:30 AM | Permalink | Comments (20) | TrackBack (1)
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Tracked on Dec 31, 2007 11:48:50 AM

Comments

But Barry:

It's been an unseasonably warm winter so far!!! How could you miss that in your analysis???

/sarcasm off

Happy New Year big guy. BigPicture is as good as ever.

Posted by: Byno | Dec 31, 2007 11:10:58 AM

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