Existing Home Sales Hit 12-Year-Low
Sales of existing homes took an unexpected plunge from December to January, falling to the lowest level in nearly 12 years as pessimism about the economy grew and buyers waited to see how the new government would help revive the U.S. housing market.
The National Association of Realtors said Wednesday that sales of existing homes fell 5.3 percent to an annual rate of 4.49 million last month, from 4.74 million in December. It was the weakest showing since July 1997.
Sales had been expected to rise to an annual pace of 4.79 million homes, according to Thomson Reuters.
The median sales price plunged to $170,300, down 14.8 percent from $199,800 a year earlier. That was the lowest price since March 2003 and the second-largest drop on record.
Foreclosures have swamped the market - especially in particularly distressed states like California, Florida, Nevada and Arizona. The Realtors group estimates that about 45 percent of sales nationwide are foreclosures or other distressed property sales.
That's great news for buyers, who are paying the most affordable prices in years. Another boost: the combination of low interest rates and the $8,000 first-time homebuyer tax credit tucked in the economic stimulus plan signed by President Barack Obama this month.
The tax credit should help boost home sales by late spring or early summer, said Lawrence Yun, chief economist for the Realtors group.
Buyers "did not want to jump into the market until they were certain" what the government would do to resuscitate the housing market, and that clearly dampened January sales, Yun said.
The number of unsold homes on the market last month fell almost 3 percent to 3.6 million, the lowest inventory level in two years. But due to the slumping sales pace, it would still take 9.6 months to rid the market of all of those properties, up from 9.4 months in December.
© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The National Association of Realtors said Wednesday that sales of existing homes fell 5.3 percent to an annual rate of 4.49 million last month, from 4.74 million in December. It was the weakest showing since July 1997.
Sales had been expected to rise to an annual pace of 4.79 million homes, according to Thomson Reuters.
The median sales price plunged to $170,300, down 14.8 percent from $199,800 a year earlier. That was the lowest price since March 2003 and the second-largest drop on record.
Foreclosures have swamped the market - especially in particularly distressed states like California, Florida, Nevada and Arizona. The Realtors group estimates that about 45 percent of sales nationwide are foreclosures or other distressed property sales.
That's great news for buyers, who are paying the most affordable prices in years. Another boost: the combination of low interest rates and the $8,000 first-time homebuyer tax credit tucked in the economic stimulus plan signed by President Barack Obama this month.
The tax credit should help boost home sales by late spring or early summer, said Lawrence Yun, chief economist for the Realtors group.
Buyers "did not want to jump into the market until they were certain" what the government would do to resuscitate the housing market, and that clearly dampened January sales, Yun said.
The number of unsold homes on the market last month fell almost 3 percent to 3.6 million, the lowest inventory level in two years. But due to the slumping sales pace, it would still take 9.6 months to rid the market of all of those properties, up from 9.4 months in December.
Popular on MoneyWatch
- Amy's Baking Company: Post-meltdown PR campaign
- How to stop the mediocrity pandemic
- Reverse cell phone lookup service is free and simple
- 4 Things Not to Buy at Costco
- Top 10 professional life coaching myths
- Powerball: What to do if you won
- Fired for violating an unwritten policy
- Facebook's first year on Wall Street 5 Photos
Posted by oldtimer1941 at 1:09 PM : Feb 25, 2009
~~~~~~~~~~~~~~~~~~~~~~~~
He really is pathetic, isn't he? I wish I could be more sympathetic, but what can you do when people continually make the wrong choices?
~~~~~~~~~~~~~~~~~~~~
You are right....He sure reacts when you pull his chain...LOL
No, sorry, I know better then that you are probably not really a fool,
you are really a Karl Rove republiCON, a cheap LIAR,
when you lose your job typping blogs in Dork Cheney's basement computer room,
you will be the first in line for a government hand out
Posted by pythoncharly at 12:31 PM : Feb 25, 2009
~~~~~~~~~~~~~~~~~~~~~~~~~~
I'll bet you are one of the poor dim wits that didn't have enough brains to figure out how to make it in this society....Oh well, survival of the fittest....Looks like you aren't fareing too well.....
~~~~~~~~~~~~~~~~~~~~~~~~~
And you sir, are a snake!!!!
and to be ready when their adjustable rate went up, that was the plan
~~~~~~~~~~~~~~~~~~~~~~
It's that kind of stupid a.ss logic that got you into the mess in the first place....What does it take to make you Neanderthals get it? You only get into debt on the income you presently have, not what you expect in the future....You only bet on a sure thing....Anything above that is gravy, and should be put away for the future....The future has a way of screwing you if you don't plan for it....
~~~~~~~~~~~~~~~~~~~~~~~~~
I'm an oldtimer also.....Seems like we're the only ones who REALLY know what it's all about......