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The median price of a single-family home fell last month to $219,800, down 2.5% from the price during September 2005.
Sales of previously owned homes fell by nearly 2% during September. That sales rate is the slowest since January 2004.
Can't you just hear the air popping out of the bubble?
HOUSING, THE WORST IS YET TO COME
Editor, Successful Investing
President, Fabian Investment Resources
The National Association of Realtors reported that sales of existing homes fell during September to mark the sixth straight month of declines. In addition, the median sales price of a home dropped on an annual basis by the largest amount on record.
The industry group also reported that sales of previously owned homes fell by nearly 2% during September to a seasonally adjusted sales pace of 6.18 million units. That sales rate is the slowest since January 2004.
Can't you just hear the air popping out of the bubble?
Want more evidence of a housing slowdown? How about the median price of a single-family home falling last month to $219,800, down 2.5% from the price during September 2005? That dip just happens to be the biggest year-over-year price decline in record going back nearly four decades.
After record sales of both new and existing homes for five consecutive years, we now are seeing the housing market rapidly loosing steam. Of course, that hasn't stopped industry bulls from saying we've now hit bottom.
"The worst is behind us as far as a market correction … this is likely the trough for sales," said David Lereah, the National Association of Realtors' chief economist told the Associated Press. "When consumers recognize that home sales are stabilizing, we'll see the buyers who've been on the sidelines get back into the market."
Sure, eventually buyers will come back into the market, but not before home values give back a lot more than they already have. In my opinion, there is more pain ahead for housing. Despite what some people out there are saying, I think the worst is yet to come.
Making Money with Doug Fabian airs live Monday through Friday from 2:00 to 3:00 p.m. and Saturdays from 10:00 to 11:00 a.m. PACIFIC STANDARD TIME. During these times you can listen to the show live from anywhere in the world and you can listen to archived shows at any time.Now you can view Doug's daily market update, guest interviews and excerpts of his radio show at our new Video Archive.
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