Page 1 of 7 12345 ... LastLast
Results 1 to 10 of 67

Thread: Home Prices Plunge by Most in 35 Years

  1. #1
    Howie Feltersnatch
    Home Prices Plunge by Most in 35 Years
    Thursday October 26, 1:50 pm ET
    By Martin Crutsinger, AP Economics Writer
    New Home Prices Fall by the Largest Amount in More Than 35 Years
    WASHINGTON (AP) -- The median price of a new home plunged in September by the largest amount in more than 35 years, even as the pace of sales rebounded for a second month.
    The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005. It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.
    The price decline for new homes came while the sales pace picked up, rising by 5.3 percent to a seasonally adjusted annual rate 1.075 million homes. It marked the second consecutive increase in sales following three months of declines.
    The declines in prices served to underscore the severity of the correction in the once-booming housing market, which had seen sales of both new and existing homes soar to record levels for five consecutive years, propelled by the lowest mortgage rates in more than four decades.
    This year, with mortgage rates rising through midsummer, sales have cooled considerably, with housing expected to trim more than a percentage point from overall growth in the last half of the year.
    The debate is whether the slowdown will be enough to push the country into an outright recession. The Federal Reserve, recognizing the weakness in housing, halted a two-year string of interest rate increases in August and left rates unchanged for a third straight meeting on Wednesday.
    The Fed, however, gave no indication that it planned to start cutting rates because of the weakness in housing, saying it was still concerned that inflation remained too high.
    The 5.3 percent rise in new home sales in September followed a 3.8 percent rise in August and was the biggest one-month gain since an 8 percent increase in March. However, sales had fallen for three straight months from May through July.
    The rise in sales last month was led by a 23.9 percent jump in the West. Sales were also up 6.9 percent in the South. However, sales fell by 34.5 percent in the Northeast and were down 6.3 percent in the Midwest.
    In other economic news, the government said that orders to U.S. factories for big-ticket manufactured goods, powered by a huge jump in demand for commercial jetliners, soared in September by the largest amount in more than six years.
    The Commerce Department reported that orders for durable goods rose by 7.8 percent last month to $226.7 billion. The increase followed two consecutive months of declines and was the biggest gain since June 2000.
    The improvement was more than triple the 2.3 percent gain that Wall Street had been expecting, but virtually all of the strength came from a giant 183.2 percent increase in orders for commercial aircraft. Outside of transportation, orders were up a far weaker 0.1 percent.
    In a third report, the Labor Department said the number of newly laid off workers filing claims for unemployment benefits rose by 8,000 last week to a seasonally adjusted 308,000. That increase was in line with expectations.
    The September 7.8 percent increase in factory orders followed declines of 0.1 percent in August and 2.8 percent in July. Despite last month's jump, analysts believe that the factory sector is slowing under the impact of a weakening overall economy.
    The economy began the year with growth at a sizzling pace of 5.6 percent at an annual rate but saw that slow to 2.6 percent in the spring and analysts believe overall economic growth in the just-completed July-September quarter slowed even further to around 2 percent or less. The government will report the actual third quarter figure on Friday.
    For September, transportation orders rose by 27.6 percent as the big jump in demand for commercial aircraft offset a 6.1 percent drop in orders to automakers, who have been struggling recently under the impact of weak sales of trucks and sport utility vehicles.
    The rise in commercial airplane orders had been expected, given that Boeing Co. booked new orders for 175 planes, up from 30 in the prior month.

  2. #2
    There is no bubble

  3. #3
    It is just a correction, please people, don't panic.

  4. #4
    Trailer Park Casanova
    All the rags and TV pundits say 'Vegas will take the biggest hit.
    How is 'Vegas doing? Any truth to the speculation?

  5. #5
    All the rags and TV pundits say 'Vegas will take the biggest hit.
    How is 'Vegas doing? Any truth to the speculation?
    Thats what I am hearing too, if it does, that is where I am buying my next home, Henderson NV.

  6. #6
    But if fails to say properties increased how many 1000 percent in 35 years!

  7. #7
    But if fails to say properties increased how many 1000 percent in 35 years!
    You mean the last 2 years...

  8. #8
    Its funny, I read this shit everyday about home prices coming down, but it seems to be happening everywhere except where I live.

  9. #9
    All the rags and TV pundits say 'Vegas will take the biggest hit.
    How is 'Vegas doing? Any truth to the speculation?
    We have not seen it too bad yet. Prices are still way too high. Homes are sitting on the market forever now, but nobody is dropping their price by much yet. If they want to sell, they better.
    I am expecting it to get rough also. Luckily I bought cheap and will sell cheap when the mansion I want is selling low.

  10. #10
    HMMMMMM, that's odd?
    My neighbor just sold his house for .9% less than the asking price. :idea:
    He's bummed it's only 110% more than he paid for two years ago.
    The sky is falling the sky is falling!
    Damn that George Bush!!!!

Page 1 of 7 12345 ... LastLast

Similar Threads

  1. home prices in havasu
    By BEER&WATER in forum Sandbar
    Replies: 42
    Last Post: 05-04-2007, 09:06 PM
  2. Korean War Soldier Home After More Than 56 Years
    By RitcheyRch in forum Political Phetoric
    Replies: 0
    Last Post: 02-15-2007, 11:34 AM
  3. Oops: Home prices: Record drop in October
    By Howie Feltersnatch in forum Sandbar
    Replies: 0
    Last Post: 11-28-2006, 10:29 AM
  4. Home prices
    By cc322 in forum Sandbar
    Replies: 32
    Last Post: 04-14-2004, 10:36 AM
  5. the PLUNGE....omg!!!
    By XLGPP in forum Sandbar
    Replies: 42
    Last Post: 04-24-2003, 01:22 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts