Housing Prices Fall 14.4% in Sign of Continuing Slump

[Truth2Tell]

Source: New York Times

By VIKAS BAJAJ
May 28, 2008

America’s home-buying season, when for-sale signs sprout like dandelions, is shaping up to be even worse than expected this year, with prices falling, sales slowing and few signs of a turnaround emerging.

Two reports released Tuesday captured the bleak picture. One showed that home prices nationally fell 14.4 percent in March from a year earlier. The other showed sales of new homes, although up slightly in April, remained mired near their lowest levels since 1991.

While Wall Street is growing hopeful that the economy might dodge a recession, many economists warn that the pain in the housing market may last for several years. Even local markets like Seattle, which once seemed immune to the slump, are weakening. Prices nationwide might fall as much as another 10 percent before a turnaround takes hold, economists said.

The problem boils down to supply and demand. As the home-buying season — that annual rite of spring and early summer — enters what is traditionally its busiest period, there are simply too many homes in many parts of the country, and too few people with the means to buy them. The situation is likely to get worse because a rising tide of foreclosures is flooding the market with even more homes, while a slack economy and tight mortgage market are reducing the pool of potential buyers.



Read more: http://www.nytimes.com/2008/05/28/business/28home.html

---

But everything is going to turn around any minute... Really.

[papau]

1. A 12 month index will not turn positive until as much as year after House prices rise

[Skink]

2. Didn't prices rise atleast this fast this decade?

Houseing costs are out of control.

[Quantess]

6. Yes, they did.

Housing prices rose artificially high, in most locations. Most people were counting on the housing market to keep rocketing upward until eternity.

[geckosfeet]

3. Come on people. The eekonomic stimulatin packige is about to kick in!

Stop writing slanderous lies about our economy.

[HockeyMom]

4. What they call voluntary foreclosure

I am hearing about more of this recently where people simply pack up and abandon their homes. This happened on Long Island in some areas back in the late 70s.

[dipsydoodle]

5. What's the difference between a slump

and restoration down to whatever value was before artificial inflation ?

[Skittles]

7. GOOD

they are STILL way, WAY over-f***ing-priced