Home Sales Edge Up, Prices Still Tumbling

Foreclosures Dumping Even More Houses Into An Already Glutted Market

(AP)  Sales of existing homes edged up slightly in May although median home prices continued to fall.

The National Association of Realtors reported that sales of existing single-family homes and condominiums rose by 2 percent to 4.99 million units last month

It was only the second sales increase in the past 10 months, but it was not viewed as a sustained rebound. Many economists believe that prices will have to decline more before the housing industry can mount a sustained recovery.

The median price of an existing home sold in May dropped to $208,600, a fall of 6.3 percent from a year go. That was the fifth biggest year-over-year price decline on records that go back to 1999.

The strength in sales reflected gains in all parts of the country except the South, where sales dropped by 0.5 percent. Sales were up 5.5 percent in the Midwest, 4.6 percent in the Northeast and 2 percent in the West.

Paul Bishop, senior economist for the Realtors, said that for the past few months sales have been rebounding in parts of the country that had been hardest-hit by the housing bust, while sales have weakened in some areas that formerly had been immune from the overall downturn.

Distressed areas that now are seeing sales gains included Sacramento, the San Fernando Valley and Monterey in California; Sarasota, Fla.; and Battle Creek, Mich.

The inventory of unsold homes dropped by 1.4 percent to 4.49 million units, which represents a 10.8-month supply at the May sales pace, down from a 11.2-month supply in April. That's still about double the inventory level that existed during the five-year housing boom.

"Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets," said Lawrence Yun, the Realtors' chief economist.

However, rising mortgage foreclosures are dumping even more homes onto the already glutted housing market.

Many economists predict sales will keep falling through the summer and prices will not start to rebound until the spring of next year.

[naucoming4u]

from riches to rags......

Posted by underdogus10 at 05:24 PM : Jun 26, 2008
.......

...and from rags to dirt.

[obama8years]

Think how long we''''ll blame W for the worlds woes. Guantanamo may be the quietest place for him.
-----------------------------------------
Your a nut. A liberal Editor even said bush didnt lie. Second of all , I dont see any terrorist attacks happening on our shores aftr 911. Third the Democrats took control of a stable housing market and 2.00 gas. Democrats in Congress screwed us. I blame them and the administration for not coming up with solutions that will help Americans , not hurt em. I thought democrats were supposed to be more for the people. Polosi is a Poser.

[hunterdon6]

Nobody complained when housing prices was going up 10-20 % a year. Except the people who couldn''t afford them. Now the market is just correcting itself, and now people are able to afford a house for the first time. The American way is always to blame someone else for all the problems. Look in the mirror, chances are that is the face for your problems.

[underdogus10]

from riches to rags......

[feelfree4u]

Re: "Foreclosures Dumping Even More Houses Into An Already Glutted Market"

Predictable, and predicted.

We clearly have a ways to go yet.

Thanks again, Alan Greedscam!

[stevex47]

Think how long we''ll blame W for the worlds woes. Guantanamo may be the quietest place for him.

[stevex47]

"New Theorum of Economics:"

This is why nutjobs like Mcsame don''t have a clue about economics.

The folks buying homes are the ones buying forclosures to rent to low income folks who lost their jobs under W.

[clestes-2009]

newview08,

Everytime a rep has no answer for a shrub disaster they always blame Bill. As you might guess, BC gets a lot of blame these days. I have even read that the current mess in Iraq is his fault.

Everytime you read the words Bill Clinton, you know you have won that debate.

[mcvet]

New Theorum of Economics:

When the market goes down, the liberals whine.

When the market goes up, the liberals whine.

Posted by One-American at 03:25 PM : Jun 26, 2008


EXACTLY who are these "Liberal''s" you keep slinging your hatred at?? UNLESS you consider 80% of this nation to be "Liberal" I''d say you''re just yet another simple minded Fascist trying to divert attention from the HORRIBLE mess the Worst in our History and his PARTY has made of the nation. Now stand... let the fuhrer hear ya!! SIEG HEIL BUSH! A little advice there sparky!! Take down a couple of those Joe McCarthy pictures from the wall. It didn''t work then and it ain''t working now!!

[clestes-2009]

Fed Chairman Ben Bernanke is a lying SOB. The economy is not expanding and inflation is on the rise.

Can''t we have anyone in this Godforsaken administration tell the truth, for once??

His false good cheer about the economy is fooling no one. The GLOBAL economy is being hit by increasing fuel prices. The housing crisis is far from over and PRINTING MORE MONEY is only going to fuel inflation more.

I don''t blame him for this mess. We can credit Greenspan and no oversight from the shrub administration for that, but either he is a liar or he is another unqualified dolt friend of shrub put in a position of power.

Probably the latter.

[newview08]

In 04-05 I remember Republicans citing housing and building as a sign that the economy was good, and taking credit for it. Now it''s Clinton''s fault? How does that work? As far I''m concerned these big mortgage companies can go belly-up for how they conducted their business, serves ''em right. They knew what they were doing. I would like to see more people go to prison over it to be honest. And these so-called home owners? More like property investors to be more precise. These scumbags would make their runs through good neighborhoods looking for available homes, snapping them up quickly before families could get into them to make a quick buck. They would then flip them or rent them out and drive down the quality of life in the area. I don''t feel sorry for them either, they can go bankrupt and sleep on the streets for all I care. This mortgage mess is battlefield justice on these criminals, plain and simple. America will get through this, and be better for it.

[clestes-2009]

Longer than that. End of next year before we see a real reduction in the housing glut.

[one-american]

New Theorum of Economics:

When the market goes down, the liberals whine.

When the market goes up, the liberals whine.

[observer2020]

faith...you mean that for once it''s not the wrath of God punishing them for owning (or trying to own) something? Wow! A first!

[aggiekat2004]

Not all Clinton''s fault. It began with George HW Bush, then continued with Clinton, then continued with George W. One of George W''s goals during his presidency was to have the highest homeownership rate in the world.

After September 11th, he promoted the idea that the best thing for national security was to have people own their own homes. He pressured Fannie Mae, Freddie Mac, lenders, and other entities to make loans available to people who weren''t probably the best candidates for home ownership.

Do a search on the White House website, under home ownership. You''ll find a wealth of information about W''s activities as well. It started back in 2002.

The pages from George W''s website relating to his home ownership policies have been removed. Incriminating? I think so.

[faith_in_w]

This is all Clintons fault.

[observer2020]

And it goes on...the rich get richer and the poor, get poorer. Or should I say the ''working poor'' now?

[sistatee-2009]

Wonderful. Now you can sell your home, but you can''t get any money for it.