Home Sales Rise, but Prices Keep Falling By ALAN ZIBEL, AP
(Jan. 26) - Sales of existing homes posted an unexpected increase last month, closing out the worst year for the U.S. real estate market in more than a decade.
The National Association of Realtors said Monday that sales of existing homes rose 6.5 percent to an annual rate of 4.74 million in December, from a downwardly revised pace of 4.45 million in November.
The results were better than expected. December's sales had been forecast to fall to a pace of 4.4 million units, according to Thomson Reuters.
Buyers were taking advantage of dramatically lower prices, especially in distressed markets like California, Florida and Nevada, where foreclosures have swamped the market.
Uh, this is truly basic stuff. When prices go down, people who can afford the product and want the product will purchase the product.
The truly scary part follows.
The nationwide median sales price plunged to $175,400, down 15.3 percent from $207,000 a year ago. That was the lowest price since May 2003 and the biggest year-over-year drop on records going back to 1968.
"The economy just simply cannot recover as long as home prices continue to decline," said Lawrence Yun, the trade group's chief economist, who called on lawmakers to include tax credits for home buyers in the economic recovery package being considered by Congress.
no, no, No, NO, NO!!!!!!!!!!!!!!!!!!
That is what got us to where we are at! Helping people buy a home they can't otherwise afford means they will lose it when their income reverts to its usual level.
The truth is that realtors want to sell homes. Believe nothing they say about economics.
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