Wikinvest Wire

Existing home sales rebound

Monday, January 26, 2009

The National Association of Realtors reported that sales of existing homes rebounded 6.5 percent in December and that home prices continued to plunge.
IMAGE The large number of foreclosures continue to pressure prices, chief economist Lawrence Yun noting that this is probably the largest price decline since the Great Depression.

The national median existing-home price for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.
The odds are that the distortion is likely to persist for some time...


Anonymous said...

Months' of supply is the big news in this month's report. From your graph it looks like the lowest figure in about 16 months.

Anonymous said...

45% is a "distortion"; oh well, soon it'll be non-foreclosure sales that will be the minority.

Anonymous said...

This doesn't shed any light to the current market. So far it looks like 2009 is going to be just as bad as 2008. We might be hitting a 20% decline this year. The end doesn't look to be near. According to a survey at this site, most people believe it won't recover until about 2012.


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