Existing Home Sales Drop for 4th Month

Source: AP

Sales of existing homes fell for a fourth straight month in June and even a small increase in home prices was not enough to lift the gloom surrounding the housing industry.

The National Association of Realtors reported that sales of existing homes dropped by 3.8 percent in June to a seasonally adjusted annual rate of 5.75 million units, the slowest sales pace in 4 1/2 years.

The median price of an existing home edged up slightly to $230,300 in June, a 0.1 percent increase from the sales price a year ago. That was the first year-over-year price increase in 11 months but analysts cautioned that it would take more months to determine whether the downward trend in prices has finally stabilized.

The decline in home sales was larger than had been expected and served to underscore the problems in housing, which is currently in the worst slump in 16 years.

Read more: http://abcnews.go.com/Politics/wireStory?id=3412616

But the DOW is over 14,000 :sarcasm: :sarcasm:

i gotta tell you. Country Wide's announcement yesterday is devastating. essentially, don't plan on being able to use your equity for anything for the next couple of years because you will get killed in interest.

if you have a fixed mortgage stay put. you aren't selling. if you have an ARM, get a 2nd job (it might be the only way to ride this out)

Then I've got a bridge, a few thousand acres of land, and some complete and unoccupied housing developments to sell you.

Source: AP

WASHINGTON (AP) -- Sales of new homes fell in June by the largest amount in five months as the housing industry continued to struggle with its worst downturn in 16 years. The median home price also fell.

The Commerce Department reported that sales of new single-family homes dropped by 6.6 percent last month to a seasonally adjusted annual rate of 834,000 units. The decline was more than triple what had been expected and was the largest percentage drop since sales fell by 12.7 percent in January. Sales are now 22.3 percent below the level of a year ago.

The median price of a new home sold last month dropped to $237,900, down by 2.2 percent from a year ago. It was the biggest year-over-year price drop since a 6.5 percent fall in April. The median price is the point where half the homes sold for more and half for less.

Read more: http://biz.yahoo.com/ap/070726/economy.html?.v=19

is good news.

that lenders won't even give mortgages to people with GOOD credit. Everything is frozen. So even if a seller finds a buyer, that buyer can't qualify for a mortgage.

at home ownership someday.

their homes ...this bubble is gonna get ugly

about $160K, including price of some upgrades on flooring, appliances, etc.

When we found this new development <10 minute drive to his work--and the price--
I could hardly believe it. Almost any new condo/TH in Cary is at least $200K.

From the article:

Only the South saw an increase in sales, a gain of 7.6 percent.

Where are you, out in the sticks? That wouldn't buy a doghouse around here. (SE Pennsylvania suburbs)

with lots of big name employers (who have been hiring) 5 minutes to the
Raleigh/Durham airport.

Here's a link to the developer

http://www.kbhome.com/martha/neighborhood~CommID~01350184.aspx#

He's buying the smallest TH--almost 1400 sq ft.

Dog houses in SF are REALLY pricey!

:cry:

Not only the doghouses but the taxes on those doghouses suck in PA. :mad:

In 2005, the median family income was $46326. Even with no debt and excellent credit, the maximum mortgage they could afford is $138K; 58% of the median new house price. Existing homes aren't really any cheaper either. There's currently an 8 month supply of existing homes on the market. Who will buy these homes, new or used?

We need suitable housing in America that costs $80-$100K. In that price range, most families in America could afford to buy.