U.S. Existing Home Sales, Prices Decline
Existing home sales across America have declined for the fifth straight month in July and home prices have dropped for a record 12th straight month, USA Today reported August 27, 2007.
The National Association of REALTORS provided the data, which indicated a 0.2 percent drop in home sales compared to June 2007 and a 0.6 percent drop in home prices in July compared to a year ago.
"The deep slump in housing, combined with recent severe turmoil in financial markets, has raised worries about a possible recession. But many economists believe the Federal Reserve will ward off a full-blown downturn by reducing a key short-term interest rate if financial market conditions fail to stabilize."
Sales fell 2.2 percent in the Midwest and were unchanged in the South. Sales rose 1.8 percent in the West and 1 percent in the Northeast.
"The increase in the Northeast, which also saw the median home price increase, was seen as possibly hopeful sign that the worst of the housing downturn may be ending."
Across the nation the inventory of unsold homes rose 5.1 percent at the end of July to a record of 4.59 million units.
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