Existing home sales drop in July to slowest pace in nearly 5 years

[Purveyor]

Source: Associated Press

WASHINGTON: Sales of existing homes in the U.S. dropped for a fifth straight month in July, falling to the slowest pace in nearly five years, while home prices fell for a record 12th consecutive month.

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The deep slump in housing, combined with recent severe turmoil in financial markets, has raised worries about a possible recession. But many economists believe the Federal Reserve will ward off a full-blown downturn by reducing a key short-term interest rate should financial market conditions fail to stabilize.

The steep slump in housing has trimmed overall growth for the past year and recently the economy has been shaken by spillover effects in financial markets. Rising defaults in subprime mortgages have triggered a serious credit crunch as investors have worried that hedge funds and other big investors in securities backed by subprime loans could suffer serious losses.

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However, many analysts believe it could be months before housing stabilizes because of the threat that rising delinquencies could dump further homes onto an already glutted market.

Read more: http://www.iht.com/articles/ap/2007/08/27/business/NA-FIN-ECO-US-Homes-Sales.php

[michaelwb]

1. Hmmm.

"However, many analysts believe it could be months before housing stabilizes..."

Could the number of "months" it takes be divisible by 12 more than once?

[redqueen]

4. I'd bet good money it not only could be, but will be.

I love the rose-colored nature of most analyses out there. So helpful.

[MannyGoldstein]

2. Historically Speaking, There's Far, Far Further To Go

In the 1960s, a median house cost well under two year's median salary.
Today, a median house costs more than six year's median salary.

(And people wonder why we can't get by on two salaries per family...)

[NotGivingUp]

5. wow...that's truly amazing....and pitiful. n/t

[David__77]

6. Time to move to Buffalo, NY?

Median Home Price-to-Median Family Income Ratios for US Cities/Metros (Sorted by Home Price)
Location Home Income Ratio
San Francisco, CA $689,200 $83,700 8.23
San Diego, CA $584,100 $62,900 9.29
Honolulu, HI $529,100 $67,750 7.81
Los Angeles, CA $474,700 $59,400 7.99
New York, NY $435,200 $68,750 6.33
Boston, MA $398,300 $80,250 4.96
Washington, DC $369,000 $88,500 4.17
Sacramento, CA $352,900 $63,400 5.57
Riverside/San Bernadino, CA $343,400 $55,650 6.17
Seattle, WA $321,100 $69,450 4.62
Miami, FL $315,700 $53,650 5.88
Las Vegas, NV $291,000 $59,050 4.93
Chicago, IL $243,800 $68,950 3.54
Denver, CO $236,000 $71,700 3.29
Baltimore, MD $235,300 $72,150 3.26
Portland, OR $223,700 $66,300 3.37
Minneapolis/St. Paul, MN $218,700 $77,000 2.84
Tucson, AZ $199,000 $50,550 3.94
Milwaukee, WI $198,900 $65,200 3.05
Phoenix, AZ $193,800 $58,200 3.33
Colorado Springs, CO $192,200 $63,550 3.02
Raleigh/Durham, NC $175,600 $70,250 2.50
Philadelphia, PA $164,800 $69,100 2.38
Jacksonville, FL $164,400 $57,700 2.85
Atlanta, GA $159,500 $69,300 2.30
Salt Lake City, UT $157,000 $61,550 2.55
Austin/San Marcos, TX $154,100 $68,150 2.26
Nashville, TN $152,100 $59,800 2.54
Detroit, MI $151,000 $68,650 2.20
Albuquerque, NM $149,700 $53,500 2.80
Kansas City, KS/MO $148,300 $65,400 2.27
Lexington/Fayette, KY $141,500 $60,100 2.35
New Orleans, LA $141,200 $51,000 2.77
Columbus, OH $140,100 $63,850 2.19
Dallas, TX $140,000 $63,750 2.20
Cincinnati, OH $139,600 $63,750 2.19
Houston, TX $138,100 $59,450 2.32
Cleveland, OH $135,400 $60,850 2.23
Omaha, NE $132,400 $64,550 2.05
Memphis, TN $131,500 $53,600 2.45
Ft. Worth/Arlington, TX $123,600 $63,750 1.94
San Antonio, TX $123,600 $51,450 2.40
Indianapolis, IN $116,300 $64,000 1.82
Saint Louis, MO $112,800 $63,950 1.76
Oklahoma City, OK $110,300 $52,350 2.11
Wichita, KS $105,100 $58,650 1.79
El Paso, TX $104,800 $38,400 2.73
Buffalo, NY $93,900 $56,950 1.65

[Fiendish Thingy]

7. any info available on Canada? n/t

[Up2Late]

3. Highest Un-sold home inventory (time on the market) since 1991! Seeing a pattern here...

...anyone care to point out who was President in 1991?

A: George H.W. Bush!!! DING! DING! DING! :think:

And what year was it that Neil Bush destroyed the Savings & Loan Industry? 1987???

Home Prices Forecast: First Ever Drop

Economists Predict Impending Report Will Show Median Price Has Dropped Since Last Year

Aug. 26, 2007

(CBS) The already rough real estate market may be about to get bumpier.

Economists predict a government report due out Thursday will show a national drop in the median price of single family homes since last year. If economists are right, it will be the first time that's ever happened.

"Cumulatively, prices should fall somewhere between five and 10 percent nationwide," said economist Mark Zandi.

The median price for a single-family home is currently $223,800. The median price is the number midway between the least expensive and most expensive houses sold in a given period....
(more at link) <http://www.cbsnews.com/stories/2007/08/26/eveningnews/main3205052.shtml>