Existing Home Sales in U.S. Fall to Nine-Year Low in Signs Slump Deepening

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from Bloomberg:



U.S. Existing Home Sales Fell to 4.89 Million Rate in January

By Courtney Schlisserman

Feb. 25 (Bloomberg) -- Sales of existing homes in the U.S. fell last month to the lowest in at least nine years, signaling the housing slump is deepening and will weigh on growth in 2008.

Resales declined 0.4 percent, less than forecast, to an annual rate of 4.89 million from a revised 4.91 million in December that was higher than previously reported, the National Association of Realtors said today in Washington. The group began record-keeping for this measure in 1999.

Mounting foreclosures are adding to a glut of unsold homes that is driving down property values. Would-be homebuyers may be waiting for even lower prices, keeping the housing market depressed for a third year and dragging the economy close to a recession.

Housing is ``a long-term negative that's going to continue,'' Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York, said before the report. ``The trends are still weak. Prices haven't come down enough.''

Economists had forecast home resales would fall 1.8 percent to an annual rate of 4.8 million, according to the median of 63 estimates in a Bloomberg News survey. Estimates ranged from 4.65 million to 5 million.

The number of homes for sale at the end of January rose 5.5 percent to 4.2 million. At the reported sales pace, that represents 10.3 months' supply, compared with 9.7 months in December. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aFyEDxO.iQNM&refer=home