From the Wall Street Journal this morning:
WASHINGTON — Existing-home sales fell for the sixth month in a row during January as consumers stood on the sidelines watching prices slide for property.
Home resales fell to a 4.89 million annual rate, a 0.4% decrease from December’s revised 4.91 million annual pace, the National Association of Realtors said Monday. Originally, the NAR estimated sales at 4.89 million in December.
The median home price was $201,100 in January, down 4.6% from $210,900 in January 2007. The median price in December was $207,000. Falling prices have kept would-be buyers from signing off on property as they wait in hope for still-lower price tags.
"Inventories are high, so it’s not surprising prices are declining," NAR economist Lawrence Yun said.
More later.
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no, that prices are declining should not be surprising to anyone, unless of course they had read the NAR forecast projecting stable and later rising prices in 2008.
“Inventories are high, so it’s not surprising prices are declining,” NAR economist Lawrence Yun said.
More NAR lies. Prices are declining because homes are too expensive. Inventory is high because homes are too expensive. Rinse and repeat.
I don’t understand.
What possible reason would NAR have to be overly optimistic?
Its almost like they have a stake in all this.
I think the real news is the 2.8% decline in just the past 31 days (Dec->Jan).
On a national level, I think the median price is a fair indicator to use (although I’d prefer median price per median sqft). Imperfect, but as good as the NAR will give.
RE: NAR says -4.6% YoY.
Down only 4.6% LOL. S&P/Case-Shiller says -9.1% YoY: http://tinyurl.com/2sqdld
I wish I could find the chart they held up on CNBC this morning showing the pct change in Case-Shiller for the last 5 years. Prices fell off a cliff.
I haven’t ever seen more depressing economic reports in one day. Between surging oil and inflation and tanking housing prices and consumer confidence…
Yet the market is up over 100 points today. What are these people possibly clinging to that would cause them to throw money into any part of the current market?
I liquidated all my stocks in October. I have nothing NOTHING in the market now.
Its going to be awhile before I buy anything either.
I’m content to sit on the sidelines. I have no idea how the market could be up. Makes me think even more that the market is of in some dreamland, totally disconnected to reality.