U.S. Existing Home Sales drop for December, decline for 2007.

January 24, 2008 - Forex Economic News

A monthly report produced by the National Association of Realtors showed that existing home sales declined in the month of December and dropped overall for the year, capping off a disastrous housing market in 2007. December existing home sales fell by 2.2 percent to a rate of 4.89 million units compared with November's rate of 5.00 million units and down 22 percent from last December's sales. The year of 2007 showed a deep decline in total home sales as it registered a drop of of 12.8 percent compared with 2006 totals. This was the largest yearly decline in 25 years. The median sales price of an existing single-family home declined 1.8 percent to $217,800. This was the first time a yearly single-family median sales price has declined in at least four decades and maybe even further as the New York Times quoted the NAR’s chief economist, Lawrence Yun as saying “It’s the first price decline in many, many years and possibly going back to the Great Depression”. Yun further noted in the report that “Home sales remain weak despite improved affordability conditions in many parts of the country.” Total U.S. house inventory dropped 7.4 percent in December to 3.91 million homes for sale. Possible silver linings for the 2008 housing market mentioned in the report may come from interest rate reductions and possible legislation on raising the loan limit on home loans that could increase home sales and prevent possible home foreclosures as Yun stated that this "could get a quick boost to the market". Read the entire report here.

Tags: Home Sales, National Association of Realtors, NAR--------------- Blog index