August new home sales down 8.3 pct to 795,000 units, lowest level in 7 years

[Purveyor]

Source: Thomson Financial

WASHINGTON (Thomson Financial) - Sales of new homes in the US fell more sharply than expected to their lowest level in more than seven years as the median sales price fell by the sharpest amount in more than three decades to a level just above where it was two and a half years ago, the Commerce Department said today.

Sales of new homes in the US fell by 8.3 pct in August to a seasonally adjusted annual rate of 795,000 units. Economists had expected a pace of about 830,000 units.

That's lowest level since June 2000, when about the sales pace was at just 793,000 units. The department also lowered its estimates for June and July, estimating July's pace at 867,000 and June's pace at 835,000 units sold.

New home sales have fallen 21.2 pct since August 2006, when 1.009 mln units were sold.

The median price of a newly sold home fell 7.5 pct from last August to 225,700 usd. That's the lowest median sales prices since January 2005 and the sharpest one month price drop since 1970.


Read more: http://www.forbes.com/markets/feeds/afx/2007/09/27/afx4162812.html

[adigal]

1. I go to free republic every day to see what they blab about

and they never have any stories like this one on. Right now, they are laughing at Robert Reich who said the income disparity is greater now than it has been in the last 50 years.

[redqueen]

3. How is that funny?

:wtf:


Nevermind... there's no explaining sheer lunacy.

[Hugin]

4. Probably the same crew who was yukking it up right before the Enron Disaster...

Ripped their retirement out by the bloody roots.

They never learn.

I bet they're surprised when the sun rises every morning. I wonder if it actually hurts to be that
stupid.

[Purveyor]

2. RELATED: Fannie Mae Chief Predicts Housing Slump in U.S. Will Last for Years Fannie

Sept. 27 (Bloomberg) -- Fannie Mae Chief Executive Officer Daniel Mudd said the housing slump will last beyond next year, dragging down home prices and increasing credit losses at the largest provider of financing for U.S. mortgages.

``We don't think we hit a bottom until the end of '08 and then we have some period of time to work our way back up again,'' Mudd said today in an interview in Washington.

Mudd's prediction is more bearish than that of the National Association of Realtors, which this month predicted new home sales will stop falling in the first quarter of 2008. Pessimism about the housing market is growing as prices fall and demand declines. Purchases of new homes in the U.S. dropped more than forecast in August and prices plunged by the most in almost four decades, the Commerce Department said today in Washington.

U.S. home prices will fall 2 percent to 4 percent this year, and ``more next year,'' Mudd said.

--
The slump, and record foreclosure rates, will increase credit losses at Fannie Mae, Mudd said in the interview. The company had about 25,125 foreclosed properties on its books at the end of last year.

http://www.bloomberg.com/apps/news?pid=20601087&sid=anhN7lDaGt5Y&refer=worldwide

[kineneb]

6. ARM resets will continue on into next year...NBR is nuts

a graph I found shows the ARM resets continuing into next May... the Realtors need to take off their rosy glasses...

more manure still on trajectory towards ventilator...

[BB1]

5. wall street stocks rose 8%

I heard on the news, in the very same sentence. Even the anchor found it *cough* coincidental.
Here in Holland, we're just waiting for the bombs not to drop ('cause they're already in place) but to explode. You guys are screwed - learn how to fish and hunt.

[Hugin]

7. "learn how to fish and hunt." -- Sage advice, BB1.

:rofl:

and a big WELCOME TO DU! :party:

[JDPriestly]

8. Home prices -- going the way of wages. Is there any surprise?

[scarface2004]

9. more sharply than expected?!?!

must be typo...you mean less sharply don t you? new home sales are tanking!!!

[Xenotime]

10. The economy is tanking too.

Home values are going down.

[Rockholm]

11. The RE market in my community is fine.

All real estate is local. This is a national story about new homes. How many you live in a place where farmlands have been built up with tract houses and mega developments? Here in my little corner of the world, we have the ocean and no land. Prices continue to rise, albeit slower than before and hosuses are staying on the market longer, but properties are selling.