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Record drop for home prices

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    Record drop for home prices

    ...in the USA...

    Record drop for home prices
    Sales of existing homes fall for sixth straight month, prices sink 2.2 percent.

    NEW YORK (CNNMoney.com) -- Home prices posted their biggest drop on record in September while sales fell for the sixth month in a row, a real estate group said Wednesday - the latest signs that the housing market is still weakening.

    The National Association of Realtors said sales of existing homes fell to an annual pace of 6.18 million last month from 6.3 million in August, marking the sixth straight monthly decline in sales.

    Economists surveyed by Briefing.com had forecast a rate of 6.25 million in the most recent period.

    The median price of a home sold in September fell 2.2 percent to $220,000 from $225,000 a year ago. It was the biggest year-over-year drop since the record 2.1 percent decline recorded in November 1990, when the nation was in recession..

    The group's August sales report was the first in 11 years to show a year-over-year decline in the price of a typical home.

    The median is the point at which half the homes sold cost more and half less.

    One bright spot for the housing sector in the report was a decline in the number of homes on the market, which fell 2.4 percent to 3.75 million in September, giving the market a 7.3 month supply of homes at the current sales pace.

    Thomas Stevens, a realtor in Vienna, Va., and the president of the trade group, viewed that number as encouraging.

    "The good news is that fewer new listings are coming online," Stevens said in a statement. "It appears we have passed a cyclical peak in terms of the number of homes on the market."

    The real estate market and home building have cooled significantly since hitting records in 2005 - one of the key causes of a slowdown in the broader economy cited by the Federal Reserve at its last two meetings as a key reason not to raise interest rates. The central bank's latest decision on rates and view of the economy is due later Wednesday.

    The slowdown has hurt profits and sales for the nation's major home builders, including Pulte Homes (up $0.57 to $32.33, Charts), Centex (up $1.22 to $53.61, Charts) D.R. Horton (up $0.39 to $23.97, Charts), Lennar (up $0.74 to $47.08, Charts), K.B. Home (up $0.92 to $45.24, Charts) and Toll Brothers (up $0.45 to $30.05, Charts). Tuesday afternoon Centex, the nation's No. 2 home builder in terms of revenue, became the latest to cut its sales forecast for the current period and rest of its fiscal year that runs through March.

    The government will report on new home sales for September on Thursday -considered more of a leading indicator of the market since it's based on sales when contracts are signed, not on closings, which are used for existing home sales and usually come months later.

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    $250 USD for a big American sized house? Heck I'd buy one for that kind of money!!! Anyway, if US house prices will continue falling then you can be damn sure it will come over here next year.

    #2
    Not that'll it affect you in any way. Maybe the dispossessed homeowners will suddenly raise the price of bedsits due to increasing demand?

    Never mind, you'll probably get a better class of chav to share with now.
    Hard Brexit now!
    #prayfornodeal

    Comment


      #3
      It is about time you clubbed together with a few friends to buy a house.

      You can get three people in a double bed, bit of a squeeze, so with a spacious 3 bedroom house I reckon you could just about afford it with about 8 other people.
      I'm alright Jack

      Comment


        #4
        Originally posted by BlasterBates
        It is about time you clubbed together with a few friends to buy a house.

        You can get three people in a double bed, bit of a squeeze, so with a spacious 3 bedroom house I reckon you could just about afford it with about 8 other people.
        That's just as many people as he's living with now I guess.
        I've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.

        Comment


          #5
          I've got 4 bedroom house, will consider taking on a pretty lady lodger from Romania or Bulgaria, maybe both

          Comment


            #6
            Originally posted by AtW
            I've got 4 bedroom house, will consider taking on a pretty lady lodger from Romania or Bulgaria, maybe both
            To clean them for you no doubt?

            Comment


              #7
              No no no, that would be rather rude.

              Comment

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