Housing markets continued to slump across the nation in August as the number of existing homes sold dropped for the 13th straight month, according to the latest report from the National Association of Realtors.They keep telling us the U.S. economy is healthy yet the housing market has collapsed, the Federal Reserve felt a rate cut was necessary to ward off inflation and the U.S. dollar continues its free fall. Now that is a good economy.
Sales fell 4.3 percent from July to a seasonally adjusted annualized rate of 5.50 million. Sales have fallen 12.8 percent since last August's pace of 6.31 million homes.
Lawrence Yun, senior economist for NAR, blamed much on the loss on the current credit crunch. "The unusual disruptions in the mortgage market, including a significant rise in jumbo loan rates, resulted in a fairly high number of postponed or cancelled sales, with many buyers having to search for other financing when loan commitments fell through," he said in a statement.
The slump pushed up the inventory glut to 4.58 million existing homes, the highest level in 16 years. There is now a 10-month supply of homes on the market at the present rate of sales.
Tuesday, September 25, 2007
Home Sales Continue Spiral Down
Sales of existing homes drop for 13th consecutive month.