Thursday, February 24, 2011

WRAPUP 3-US home sales rise, price slump points to weakness | Reuters

Lowest prices since 2002 - are they crazy??? We know one home that auctioned off for 15,000 less than in 1993. And another that auctioned off for 70,000 less than in 2000. Don't fool yourselves homes in Arizona are the lowest they have been in about 20 years. And the slide continues.

WRAPUP 3-US home sales rise, price slump points to weakness | Reuters: "WASHINGTON, Feb 23 (Reuters) - Surging sales of distressed
properties pushed prices for previously owned U.S. homes to a
near nine-year low in January, even as they helped to lift
overall sales to an eight-month high.
The National Association of Realtors said on Wednesday
existing homes sales climbed 2.7 percent to an annual rate of
5.36 million units, marking the third straight month of gains.
Economists had expected a fall to a 5.24 million-unit pace.
But foreclosures and short sales, which typically occur
below market value, accounted for 37 percent of the
transactions and suggested further price declines ahead.
median home price fell 3.7 percent from a year ago to $158,800,
the lowest since April 2002.
'What this shows is that there will be an ongoing
adjustment to prices to the downside. Housing fundamentals are
still weak,' said Neil Dutta, an economist at Bank of America
Merrill Lynch in New York."

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