Housing Still Mired In Slump, Data Shows

Existing Home Sales Up 3.1% In July But Number Of Unsold Properties At All-Time High

(AP)  Sales of existing homes rose 3.1 percent in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the country hit hardest by the housing bust.

However, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over. Prices nationwide are not expected to hit bottom until early next year.

The National Association of Realtors reported Monday that sales rose to a seasonally adjusted annual rate of 5 million units, down from June's downwardly revised rate of 4.85 million units. Sales had been expected to rise by only 1.6 percent, according to economists surveyed by Thomson/IFR.

"The process of a recovery has begun," said Joel Naroff, president of Naroff Economic Advisors. "It's not going to be short and swift, but it's begun nonetheless."

Home sales were about 13 percent lower than a year ago and prices were down dramatically. The median price for a home sold in July dropped to $212,000, down by 7.1 percent from a year ago.

Despite the third monthly sales increase this year, the number of unsold single-family homes and condominiums rose to 4.67 million, the highest number since 1968, when the Realtors group started tracking the data.

That represented a 11.2-month supply at the July sales pace, matching the all-time high set in April.

Until the inventory level is reduced to more normal levels, analysts say, the housing slump is likely to persist. The inventory level is being driven higher by a massive wave of mortgage foreclosures.

Between 33 and 40 percent of sales activity is coming from foreclosures or other distressed properties, he estimated.

While buyers are pouncing on lower prices - especially in places like California, Florida and Nevada - sales are sluggish in formerly stable states like Texas.

"People are responding to lower prices," Yun said, but there is "too much uncertainty" about the housing market's future to mark a definite bottom.

One key unknown is the future ability of mortgage finance companies Fannie Mae and Freddie Mac to supply money for loans. The two government-sponsored companies have dramatically cut back the availability of mortgages as they cope with mounting losses from foreclosures.

President Bush last month signed sweeping housing legislation that aims to prevent foreclosures by allowing an estimated 400,000 homeowners to swap their mortgages for more affordable loans, but only if their lender agrees to take a loss on the initial loan.

Even with government help, nearly 2.8 million U.S. households will either face foreclosure, turn over their homes to their lender or sell the properties for less than their mortgage's value by the end of next year, predicts Moody's Economy.com.

[babooph]

If I were a businessman, cast Bush likeness toilet bowls,they should really sell well!

[mcvet-1]

whoa there sparky. Republicans today are about as far from true Conservatives as you can get. Obama is more aligned with Conservative values--raising taxes to balance the budget, using government spending wisely as economic stimulus, not running the government as a machine to squeeze money from people and give it to the rich.

Posted by andor3 at 02:42 PM : Aug 26, 2008

It was when we started putting people in Boxes, calling them "Liberal" or "Conservative" that we really started down hill. I find myself Liberal on some issues and Conservative on others. When we listen to and treat each other with respect and dignity we get things done. Out of that kind of debate have come some of the biggest social and economic ideas in our history. When you take idea''s off the table because someone puts a label on them you truly are doing yourself and the nation a big disservice!

[mcvet-1]

CORepublican: You sound just like one of those neoconservative attack dogs. What are they paying you with -- Dog Bones.

Posted by r9119111 at 04:52 AM : Aug 26, 200

It''s a contest. The winner gets a NEW MOBILE HOME... DOUBLE WIDE!! ROFLMAO SIEG HEIL McSLIME

[mcvet-1]

I think I''''d look a little closer at who really pushed those revised bankruptcy laws... It was old JOE BIDEN. Just like Cheney is to Big Oil, old JOE is to Big Money. Yeah, right, go ahead and buy a new house, heck, buy two or three (and vote for Joe-- heh, heh)

Posted by tvtoy1000 at 12:52 AM : Aug 26, 2008

Not so fast sparky. The Bankruptcy Changes were FASCIST REPUBLICAN''s PERIOD... all Biden did was attempted to get them changed the best he could... save a few working people. I noticed you didn''t mention the Enron Loophole and who was responsible for that? ALL the Regulations our Fathers put on these Banks? Who was responsible for removing them?? Hint!! He is John McSlimes ECONOMIC ADVISOR!! SIEG HEIL Y''all ROFLMAO Man if these fascist get anymore desperate??? Well it''s hard to say what they will try to keep the "party" in power...even if it means having a tired old man LIE his way in!!

[mcvet-1]

Now all of you rush right out and vote for John McSame and 4 MORE YEARS of TRICKLE DOWN. By the end of that 4 years we''re all in THIRD WORLD Status and can get Aid from China or Japan. SIEG HEIL McSlime

[andor3]

"Republicans, true conservatives, must stand up to and face down the potential tax increases and economic destruction that Obama is promising. "

whoa there sparky. Republicans today are about as far from true Conservatives as you can get. Obama is more aligned with Conservative values--raising taxes to balance the budget, using government spending wisely as economic stimulus, not running the government as a machine to squeeze money from people and give it to the rich.

[whitemale08]

...why would you be suprised at this?

And this whole article is an UNDERSTATEMENT of the real problem.

This economy doesn''t just have a housing problem, the GLOBAL FINANCIAL SYSTEM IS BROKEN, BANKRUPT, DONE, OVER, WHATEVER OTHER WAY YOU WANT TO SAY IT.

The "housing bubble" through unprecedented "sub-prime" markets were used as a "financial vehicle" or "SIV" to loot what was left of the country by mortgage debt.

Now that that has deflated, there is nothing to grow the economy, absolutely nothing except WAR! and unless we accept that then we are doomed.

What we are witnessing is not just a recession/depression but a "melt-down" or "deterioration" of our economic infrastructure around the world.

This all stems from the fact that Republican Nixon took us off gold and ended the Bretton/Woods fixed exchange rate system and allowed our economy to run off debt and defecit spending.

In that type of system, you constantly need "bubbles" always greater then the one that proceeds it cause hyper-inflation so that it can be hidden by finance and monetized into bonds and derivatives to "fund" the economy.

Well that engine has broken down and unless we replace it and go back to the Bretton/Woods system we are DOOMED!!!!!!

[antoniof123]

CORepublican wrote: "The national debt will never be paid down and...if the US was declared in default the entire world economy would collapse and we''''d be even worse off."

This is the height of Republican stupidity. They talk without thinking. If this country fell to that point you would have civil unrest because out money would be worthless and you could not even buy food. And remeber you don''t own anything of worth that you can trade. Even if you did most do not and when they have nothing left to lose that is what starts civil unrest.

I have said it before neo cons are dumber than dirt the sad part I am starting to realize is they breed.

[r9119111]

CORepublican: You sound just like one of those neoconservative attack dogs. What are they paying you with -- Dog Bones.

[sistatee-2009]

Remember now that subject+verb predicate=a complete sentence.
Posted by CORepublican at 07:06 PM : Aug 25, 2008

That was before Ebonics.

[sistatee-2009]

I can tell you unequivacally that the republicans have destroyed this country.
Posted by iphyt4u at 10:27 PM : Aug 25, 2008

Really? Who cast the deciding vote in the senate on NAFTA? Al Gore. Who signed NAFTA into law? Bill Clinton. What has driven more jobs out of this country than anything else? NAFTA. The Democrats themselves have a UAW local president scheduled to speak at the convention, telling how his job is going to Mexico. The truth of the matter is, the Republicans thought up NAFTA (thanks to David Rockefeller and his ilk) and the Democrats turned it into law. You haven''t ANY friends in Washington.

[Michael Arnold]

I think I''d look a little closer at who really pushed those revised bankruptcy laws... It was old JOE BIDEN. Just like Cheney is to Big Oil, old JOE is to Big Money. Yeah, right, go ahead and buy a new house, heck, buy two or three (and vote for Joe-- heh, heh)

[beehive21-2009]

Money is a wonderful treasure,you just have to keep everyone from stealing it.Remember Charles Keating stole all the old people $$$$ ,what happened to him ? And,Enron,high tech bust ,it never ends, use your $$$ wisely,remember, allow $$$ to work for you rather, you work for it ? Good Luck in the future, they are lined up to take your $$$.

[iphyt4u]

The home sales spike is directly related to foreclosed homes being resold. The bankruptcy laws were changed by the Bush administration and the republican congress prior to the 2006 elections.Consequently, the Bush administration must have known that Americans would be screwed out of their homes. Americans were told that tax cuts for the wealthy would result in job growth. Unemployment is rising, the government has resorted to bailing out banks and mortage companies, which is nothing more than republican welfare. I also went to a public school and state sponsored university, and I can tell you unequivacally that the republicans have destroyed this country. Vote for change! Vote Democrat! Vote for Obama and Biden! God Bless America!

[mcv57]

LoL, the News networking BS is pulling in the suckers of this country. What a joke. I guess the people just want to throw away-money, Bankers are loving this (no equity home loan).

FOR CRYING OUT LOUD, WORLD FINANCE IS STILL BEING DRAGGED UNDER. THIS IS JUST A FALSE HOPE!

[corepublican]

r9119111, I have never had a hard time paying my bills. I got an education in public school and went to a state supported university. It was at that university that I discovered how retarded some liberals are and became an entrenched conservative. Why do you struggle with your bills, sir? Was it the retarded choice you made to buy your trailer with and ARM? Or did you quit high school to live out your all-American McDream, complete with fries and a coke?

[corepublican]

Furthermore, Mr. WhiteMale08, your math skills seem to be terribly lacking. In your financial example, you state that $59,000 is approximately 400% of the $69,000 purchase price for the car you use. Now, I know second graders that can tell you that 59,000/69,000 DOES NOT EQUAL 4. Let me guess, sir, you signed and adjustable rate mortgage and are losing your house?

[corepublican]

WhiteMale08, given that your comment is nothing more than a rambling series of sentence fragments that fail to make a coherent point, I must say that you should review basic sentence structure. Remember now that subject+verb predicate=a complete sentence.

[corepublican]

And for WogerWabbit, I have this to say: were you one of the Bible-thumping, ***-hating pseudo-Republicans and that''s why you''re not a Republican anymore? I have a heart and a mind and I''m sure my Republican colleagues do too. Pardon me, but I have digressed from my point, which is that in this crucial time, Republicans, true conservatives, must stand up to and face down the potential tax increases and economic destruction that Obama is promising.

[corepublican]

In response to downtowner''s comment about $27,000/person being the national debt, I have this to say, I have my family''s share and the government can come pick it up, I might even pay someone else''s share. Does he realize that the national debt will never be paid down and that if the US was declared in default the entire world economy would collapse and we''d be even worse off. Stupid hippies.