Record Drop In Home Sales

(AP)  Sales of existing homes plunged by a record amount in September as turmoil in mortgage markets added more problems to a housing industry in its worst slump in 16 years.

The National Association of Realtors reported Wednesday that sales of existing homes fell 8 percent in September, the largest decline to show up in records dating to 1999. The seasonally adjusted annual sales rate of 5.04 million existing homes was also the slowest pace on record.

The weakness in sales translated into further pressure on prices. The median price - the point at which half the homes sold for more and half for less - fell to $211,700 in September, down by 4.2 percent from the sales price a year ago. It marked the 13th time out of the past 14 months that the year-over-year sales price has decreased.

The 8 percent decline in sales was bigger than the 4.5 percent decline that had been expected.

Analysts blamed the bigger-than-expected slump on the turmoil that hit credit markets and mortgage markets in August as worries increased over rising mortgage foreclosures.

Those worries resulted in a drying up of the availability of so-called jumbo mortgages, loans over $417,000, which are particularly important in high-cost areas such as California.

"Mortgage problems were peaking back in August when many of the September closings were being negotiated and that slowed sales notably in higher priced areas that rely more on jumbo loans," said Lawrence Yun, senior economist for the Realtors.

By region of the country sales were down 10 percent in the Northeast, 9.9 percent in the West, 7 percent in the Midwest and 6 percent in the South.

[likeitis5050]

If smart, we would let them win the election so they can clean up their own mess!!
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Posted by sun45

Well, I guess if the Republicans get in for another term it will be because the Democrats were just too smart for them???? Nice set up for the psycho babble we''ll have to listen to for the next 4 years.

[likeitis5050]

It''s a buyers market!!! Supply and demand...and banks should eat the losses and learn from their predatory and greedy lending practices. They loaned money to people they KNEW were in over their heads from the git-go, but they figured the government would step in and bail them out. I am fighting tooth and nail to stop that krap. They got into this mess all on their own and they should wade through the backwash like any other business would have to if they made such p..iss poor business decisions.

Without getting too political, I have to wonder how quickly Hillary would make this everyone''s problem by raising taxes if she were in the White House now, because I think it''s crossed Bush''s mind to help out all the bankers...he just has too many right now who wouldn''t support the move.

In the meantime, some worry that the houses sitting empty will soon become inhabited by ''squatters'' here illegally needing a free spot to park it for awhile. Just take down the yellow paper on the door and move in....who will be any wiser? Those silly illegals...never get tired of watching how they integrate into our society.

[sunchild45]

Thanks to our Kings, Bush and Cheney, their reign is about to end but they will leave their mark on our Country for many years to come. Unfortunately we will pay for those who voted them in twice, oh i forgot, first time was fraudulently won by chads and Brother Jeb. Then they had the stupidity to do that again, i guess they didn''t lose enough the first time around!! LOL Now we will all suffer from the foreclosures, R E Market, watching our homes decline in value until all is bought up by Foreigners!! Oh the Repubs, they are so much fun to watch go down in flames. If smart, we would let them win the election so they can clean up their own mess!!

[simonsez40]

This is what we have RIGHT NOW - the majority are Republican and this report comes out yearly by the Citizens for Responsibility and Ethics in Washington.

4 Democrats in there and the rest are Republican....you want 4 more years of that?

The 22 most corrupt members of Congress
Sen. Pete V. Domenici (R-NM)
Sen. Mitch McConnell (R-KY)
Sen. Lisa Murkowski (R-AK)
Sen. Ted Stevens (R-AK)
Rep. Ken Calvert (R-CA)
Rep. John T. Doolittle (R-CA)
Rep. Tom Feeney (R-FL)
Rep. Doc Hastings (R-WA)
Rep. Duncan Hunter (R-CA)
Rep. William J. Jefferson (D-LA)
Rep. Jerry Lewis (R-CA)
Rep. Gary G. Miller (R-CA)
Rep. Alan B. Mollohan (D-WV)
Rep. Timothy F. Murphy (R-PA)
Rep. John P. Murtha (D-PA)
Rep. Steve Pearce (R-NM)
Rep. Rick Renzi (R-AZ)
Rep. Harold Rogers (R-KY)
Rep. David Scott (D-GA)
Rep. Jerry Weller (R-IL)
Rep. Heather A. Wilson (R-NM)
Rep. Don Young (R-AK)


Dishonorable mentions
Sen. Larry E. Craig (R-ID)
Sen. David Vitter (R-LA)

[mediapreachr]

Get ready to deal with new bosses and buy stuff from people you never heard before.
The new ''middle class'' from Chindia is buing up properties left and right in US because the dollar ain''t worth much-I hope they don''t bring their laws and values with them,and force me to follow them-oops too late,too bad.

[kennedy7955]

The mortgage industry and its easy to get, cheap money was the only thing driving our economy. Many Americans faced with declining incomes financed their lifestyles with credit cards, home equity lines of credit, and then paid these debts off by refinancing their homes. The very worst of these people (and there were millions of them) refinanced many, many times %u2013 as they paid off credit cards and got %u201Ccash-out%u201D over and over again by refinancing their homes which were inflated in value. The majority of these people who refinanced their homes many times over, were of the worst credit kind, sub-prime borrowers. They utilized liar loans also known as no doc, stated doc and others to qualify for loans which they did not have the ability to pay.

Without this easy money to drive the economy, it is hard to believe that we could possibly prevent a recession or worse.

[lochlan-2009]

"the weak dollar is making American goods cheaper in overseas markets" is another way of saying that since Bush took office, every American employee is getting payed half (on the global market) of what he was making before Bush took office. But no surprise there, the media was hooting and howling about how well the economy was doing when the market reached an all time high of 14,000, while conveniently leaving out the fact that because of the value of the dollar globaly the market has dropped in value by around 50%. The profits pooring in for big businesses cheap products to europe, australia, and Chindia, are 100% at the expense of the working class American.

The housing market is going to fall around 20-25% over the next about three years and then go flat. The depreciation on the real estate market from that point will come from inflation for the next couple years while house prices stay flat, but inflation shoots through the ceiling. We don''t seem to take the value of the dollar or inflation into account when we are talking losses in home value.

Foreclosures, are going to be an excellent investments for foriegn (high currency value) investors in about 6 months to a year. And American businesses have been bargains for foreigners, going on two years now.

[undermyboot]

Bush''s office of Housing and Urban Development has issued new "guidelines" for acceptable family housing: They are recommending new "cardboard mansions" for all Americans at the upper-middle class level and below. These versatile living structures eliminate the need for concrete foundations, dangerous electrical wiring, and expensive internal plumbing. They also feature "portability", enabling the "mansion owner" to easily move as their job shifts from McDonalds to McDonalds. FEMA will also adopt this as the new "cost effective" replacement for "pre-9/11 thinking" housing concepts such as framed housing and double-wides. The President announced today, that with this new initiative the "mission" to solve the housing crisis has been "accomplished."

[feelfree1]

Re: "Sales of existing homes plunged by a record amount in September as turmoil in mortgage markets added more problems to a housing industry in its worst slump in 16 years."

Gee. Who could have predicted this, besides anyone that was paying attention?

The worst of the housing market collapse is yet to come.

Thanks again, Alan Greedscam!!!

[oscarez]

"The National Association of Realtors reported Wednesday that sales of existing homes fell 8 percent in September, the largest decline to show up in records dating to 1999."

This is from a group that sales houses. The number is probable closer to 20%.