U.S. Home Sales Hit Fresh Lows, Unsold Properties Flood Market
October 25th, 2007Nowhere near bottom. We’re getting into the momentum phase now.
Via: AFP:
Sales of US homes and apartments tumbled a hefty 8.0 percent in September extending one of the nation’s worst housing slumps in decades, an industry group said Wednesday.
The National Association of Realtors (NAR) said in a monthly snapshot that sales of existing homes and apartments fell to a seasonally adjusted rate of 5.04 million units in September from 5.48 million in August.
The drop was worse than expected. Most economists had only expected sales to decline to around 5.25 million. August sales were revised lower from an original tally of 5.50 million homes.
Stripping out apartment turnover, sales dived to their lowest level since January 1998.
Analysts said the grim news boosts the odds that the Federal Reserve will cut interest rates for the second time in as many months at a policy meeting next Wednesday.
The depth of the housing depression was underlined by an annual reading which showed sales of homes and apartments across the United States have plummeted a dramatic 19.1 percent from September 2006.
The sales slowdown has pushed home prices lower in many cities in the past 12 months in a market downturn which has also forced many mortgage lenders out of business.
The national median existing-home price for all housing types fell 4.2 percent from a year ago to 211,700 US dollars.
The glut of unsold homes swamping the market rose 0.4 percent at the end of September to 4.40 million, marking a 10.5-month supply at the current sales pace.
Excluding apartments, the number of unsold homes flooding the market has spiked to its highest level since February 1988.
I still remember that Adjustable Rate Mortgage “reset” chart you posted a while back. Late 2007 will be sustained unpleasantness. The first half of 2008 will be financial carnage and pandemonium.
I hear there is some house inventory reduction going on in San Diego. I realize wild fires are a normal seasonal process in CA. But, if one is deeply underwater in their mortgage, and houses nearby are burning anyway, and the firemen are busy… opportunity knocks.
I’ve mentioned this before: When a buyer defaults on a mortgage, the seller is liable. Awhile back, a banker assured me that all mortgages are written that way.
To clarify: If you sold your house ten years ago and your buyer defaults on the mortgage, YOU are obligated to pay the mortgage.
I don’t think I’ve ever heard of this standard clause being enforced. Anyone?