Existing-home sales plunge to a two-year low | MarketWatch
ECONOMIC REPORT
Existing-home sales plunge to a two-year low
Inventories of unsold homes rise to 13-year high
By Rex Nutting, MarketWatch
Last Update: 10:19 AM ET Aug 23, 2006
WASHINGTON (MarketWatch) -- Sales of existing homes plunged 4.1% to a seasonally adjusted annualized rate of 6.33 million in July, the lowest since January 2004, the National Association of Realtors said Wednesday.
The report shows a continued weakening in the housing market, with inventories up sharply while prices are softening. Sales are down 11.2% in the past year.
"Boom markets are cooling significantly," said David Lereah, chief economist for the realtors group. Sales fell in all four regions.
The housing market and the economy are "fragile," Lereah said. Some markets that never boomed are now weakening because of sluggish local economies, such as Michigan, Ohio and parts of the Northeast, he said.
"It's important for the Fed to understand how fragile the housing market is, and how fragile the economy is," Lereah said. "The economy impacts housing, and housing impacts the economy."
Economists were expecting a decline to 6.56 million, according to a survey conducted by MarketWatch...
Existing-home sales plunge to a two-year low
Inventories of unsold homes rise to 13-year high
By Rex Nutting, MarketWatch
Last Update: 10:19 AM ET Aug 23, 2006
WASHINGTON (MarketWatch) -- Sales of existing homes plunged 4.1% to a seasonally adjusted annualized rate of 6.33 million in July, the lowest since January 2004, the National Association of Realtors said Wednesday.
The report shows a continued weakening in the housing market, with inventories up sharply while prices are softening. Sales are down 11.2% in the past year.
"Boom markets are cooling significantly," said David Lereah, chief economist for the realtors group. Sales fell in all four regions.
The housing market and the economy are "fragile," Lereah said. Some markets that never boomed are now weakening because of sluggish local economies, such as Michigan, Ohio and parts of the Northeast, he said.
"It's important for the Fed to understand how fragile the housing market is, and how fragile the economy is," Lereah said. "The economy impacts housing, and housing impacts the economy."
Economists were expecting a decline to 6.56 million, according to a survey conducted by MarketWatch...
posted by Patrick Leblanc at 7:50 AM
<< Home