Existing-home sales for October resumed falling and the median prices showed the largest drop on record. Existing home sales fell to 4.98 million annualized, lower than estimates of 5.0 to 5.13 million.
This is a 3.1% decrease from September’s revised 5.14 million annualized numbers.
The National Association of Realtors said that most home buyers have withdrawn from the market. The drop in stock prices and the deteriorating economy are main reasons. Inventories were lower by 0.9% to 4.23 million houses for sale, but that still represents a supply of 10-months. The association believes housing prices have to fall further for inventories to come back down.
The median home price in October was $183,300, down 11.3% from $206,700 in October 2007. The price was the lowest since March 2004 and the percentage drop was the largest on record since 1968.
Jon C. Ogg
November 24, 2008