U.S. Economy: Existing-Home Sales Rise, Prices Fall

[Wretched Excess]

U.S. Economy: Existing-Home Sales Rise, Prices Fall

 March 24 (Bloomberg) -- Sales of existing homes in the U.S. unexpectedly rose in February as prices fell by the most in four decades.

Purchases increased 2.9 percent, the first gain in seven months, to an annual rate of 5.03 million, the National Association of Realtors said today in Washington. The median home value dropped 8.2 percent from a year earlier, the most since the organization began keeping records in 1968.

``It looks like this may be a temporary pause,'' said Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Massachusetts. ``The price declines have helped.''

Housing, now in the third year of its worst recession in a generation, is unlikely to rebound quickly as a glut on the market depresses property values and lenders toughen mortgage requirements to stem credit losses. The Federal Reserve last week said the outlook had worsened and pledged to do whatever was needed to revive economic growth.

``I would not read too deeply into a single month's data'' Lawrence Yun, the real-estate lobby group's chief economist, told reporters today. Yun projected sales would improve in the second half of the year as lower prices and cheaper mortgage rates make houses more affordable.

The Standard & Poor's 500 homebuilder index rose 8.8 percent to 448.6 at 11:22 a.m. in New York.

Home Loan Banks

Federal Home Loan Banks were freed to increase their purchase of mortgage-backed bonds by about $150 billion as part of a government effort to pump money back into a market that slumped as the housing crisis deepened.

Economists had forecast existing home sales would decline to a 4.85 million pace, according to the median of projections in a Bloomberg News survey. January's 4.89 million pace was the lowest since the group began keeping records of combined single-family homes and condominiums in 1999.

The median sales price dropped to $195,900 from February 2007. The decline was led by an 8.7 percent drop for single- family houses.

Sales of single-family homes increased 2.8 percent to a 4.47 million pace. Those of condos and co-ops climbed 3.7 percent to a 560,000 rate.

Sales rose in three of four regions, led by an 11 percent jump in the Northeast.

More

how can this be?  we are in the middle of the worst economic times since the great depression.

[Chris_]

U.S. Economy: Existing-Home Sales Rise, Prices Fall

 March 24 (Bloomberg) -- Sales of existing homes in the U.S. unexpectedly rose in February as prices fell by the most in four decades.

Purchases increased 2.9 percent, the first gain in seven months, to an annual rate of 5.03 million, the National Association of Realtors said today in Washington. The median home value dropped 8.2 percent from a year earlier, the most since the organization began keeping records in 1968.

``It looks like this may be a temporary pause,'' said Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Massachusetts. ``The price declines have helped.''

Housing, now in the third year of its worst recession in a generation, is unlikely to rebound quickly as a glut on the market depresses property values and lenders toughen mortgage requirements to stem credit losses. The Federal Reserve last week said the outlook had worsened and pledged to do whatever was needed to revive economic growth.

``I would not read too deeply into a single month's data'' Lawrence Yun, the real-estate lobby group's chief economist, told reporters today. Yun projected sales would improve in the second half of the year as lower prices and cheaper mortgage rates make houses more affordable.

The Standard & Poor's 500 homebuilder index rose 8.8 percent to 448.6 at 11:22 a.m. in New York.

Home Loan Banks

Federal Home Loan Banks were freed to increase their purchase of mortgage-backed bonds by about $150 billion as part of a government effort to pump money back into a market that slumped as the housing crisis deepened.

Economists had forecast existing home sales would decline to a 4.85 million pace, according to the median of projections in a Bloomberg News survey. January's 4.89 million pace was the lowest since the group began keeping records of combined single-family homes and condominiums in 1999.

The median sales price dropped to $195,900 from February 2007. The decline was led by an 8.7 percent drop for single- family houses.

Sales of single-family homes increased 2.8 percent to a 4.47 million pace. Those of condos and co-ops climbed 3.7 percent to a 560,000 rate.

Sales rose in three of four regions, led by an 11 percent jump in the Northeast.

More

how can this be?  we are in the middle of the worst economic times since the great depression.

...eeeevil rethug slumlords are buying up all the foreclosures.   

[Wretched Excess]

how can this be?  we are in the middle of the worst economic times since the great depression.

...eeeevil rethug slumlords are buying up all the foreclosures.   

and turning 'em into walmarts.

[NHSparky]

What?  Market forces work?  People are actually buying homes and LIVING in them rather than trying to flip them for 50K more than they're worth? 

But...but...but..."da gub'mint" is supposed to control that and save us from our own stupidity! [/moonbatDUmode]

Rove, you magnificent bastard!