Home Sales Plummet In June

2.6 Percent Drop Double What Was Expected, Fueling Worst Slump In 20 Years

(CBS/ AP)  Sales of existing homes fell more sharply than expected in June as the housing industry continued to be bruised by the worst slump in more than two decades.

The National Association of Realtors reported that sales dropped by 2.6 percent last month to a seasonally adjusted annual rate of 4.86 million units. That was more than double the decline that had been expected and left sales 15.5 percent below where they were a year ago.

The downward slide in sales depressed prices, too. The median price for a home sold in June dropped to $215,100, down by 6.1 percent from a year ago. That was the fifth largest year-over-year price drop on record.

The drop in sales pushed inventories of unsold single-family homes and condominiums to 4.49 million units, up by 0.2 percent. That represented a 11.1 month supply at the June sales pace, the second highest level in the past 24 years.

Sales were down in all regions of the country except the West, which posted a 1 percent sales increase. Sales fell by 6.6 percent in the Northeast, 3.4 percent in the Midwest and 3.1 percent in the South.

Analysts said that until the inventory level is reduced to more normal levels, the slump in housing is likely to persist. The inventory level is being driven higher by a massive wave of mortgage foreclosures, however.

Seeking to address the housing crisis, Congress is moving to pass a sweeping package of rescue measures. The plan includes support to keep as many as 400,000 homeowners from losing their homes to foreclosure and a federal lifeline to bolster troubled mortgage giants Fannie Mae and Freddie Mac.

The House passed the bill Wednesday and the Senate is expected to pass the proposal in coming days, sending it to President Bush. The president has dropped a threatened veto over a portion of the bill.

After the president said he wouldn't veto, shares of Fannie Mae shot up by close to 12 percent and shares of Freddie Mac rose by 11 percent, reports CBS News chief White House correspondent Jim Axelrod.

Mark Zandi of Moody’s Economy.com said that the move was "absolutely necessary," Axelrod reports.

"If this hadn't been passed, I think confidence would have completely evaporated. You would have seen Fannie and Freddie on a financial precipice," Zandi said.

[shanev137]

It''s just now getting to the point to maybe think about buying a house in a year from now.

[stn_sage]

According to Ron Paul, also in the bill which most of the moron''''''''s in congress did NOT read was that "all credit card transactions will now be reported to the IRS." We need to vote all the garbage in Washington out of office (both democrat & republican trash).
Posted by tylenol6
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We do not have a functioning government.
Posted by l8c6 at 09:45 PM : Jul 24, 2008
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1. This probably won''t be the end of the bailout!
2. Elected officials ARE NOT doing their jobs correctly!
3. We do not have a functioning government---it''s in pieces on the floor in the outhouse!
4. YES,YES,YES! Most, if not all of our incumbents need to be replaced, they are FAILING us!

[stn_sage]

The CEO''''s of these failed banks are laughing their _sses off. They played the "suck and dump" game really well. Suck every dime they can out of the bank''''s carcass, and then dump it on the taxpayers. They should each face a firing squad

Posted by SistaTee at 09:03 PM : Jul 24, 2008
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My comments:

1. This ''game'' is exactly what they played!
2. The CEOs should be held responsible.
3. A firing squad would be ''letting them off the hook''! They need to be a living example! I''d suggest a life term in prison would be fair!

[randynason]

Grab your pitchforks and torches-
Storm the bastille! Viva the guillotine!

[l8c6]

The housing bill that the idiot''''s in congress just passed is a whopping $800 billion dollar gift from the
taxpayers. Ron Paul says, "It is the mother of all bail outs." According to Ron Paul, also in the bill which most of the moron''''s in congress did NOT read was that "all credit card transactions will now be reported to the IRS." We need to vote all the garbage in Washington out of office (both democrat & republican trash).

Posted by tylenol6


We do not have a functioning government.

[l8c6]

Typical LIB, any blame for those who BORROWED the money and didn''''''''''''''''t pay it back?

Posted by mbcsmith

Well, hmm, I have a friend who clearly has republican leanings and he is disgusted with the banking industry attributing this crisis to greed on it''s sorry azz.

[nothappyatall]

Sales were down in all regions of the country except the West, "

DUH, let''s see, mortgage crisis meltdown = lot of people cant AFFORD their existing homes, so like they are going to just up, move and buy another one right?

[sistatee-2009]

The CEO''s of these failed banks are laughing their _sses off. They played the "suck and dump" game really well. Suck every dime they can out of the bank''s carcass, and then dump it on the taxpayers. They should each face a firing squad

[DebbieKirkland]

"After the president said he wouldn''t veto, shares of Fannie Mae shot up by close to 12 percent and shares of Freddie Mac rose by 11 percent,.."

So who owns all those stocks?
Not that I am not grateful for every chance for this housing market to recover. Without it, every other aspect of our lives will suffer. I have one comment.. the Govt. needs to go in to these banks and CLEAN house, just like they did when the SEC was out of control! How about these banks cancel these loans..re-appraise and valuate and re-issue loans for the true "market-value",.. maybe then properties would sell,.. and they would in turn make even more money. Sure beats getting them all back!

[hypnotoad72]

Typical LIB, any blame for those who BORROWED the money and didn''''t pay it back?

Posted by mbcsmith
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What''s the national debt right now? (Proof that it''s not party-line antics but politician-centric antics. And yet centrist voters are blamed for being the cause of all sorts of problems...)