Existing-Home Sales Plummet Past Predictions

By Kevin Spak, Newser Staff

Posted Oct 24, 2007 11:53 AM CDT

(Newser) – The housing market absorbed more bad news today. Existing-home sales dropped 8% in September, hitting their lowest level since at least 1999, as tighter credit standards kept buyers away. The 5.04 million annual rate was far below projections, bolstering predictions of another rate cut by the Fed next week. “The credit freeze in August definitely impacted sales in September,” one economist told the Wall Street Journal.

Sales were down in all regions, though things were worst in the Northeast and West, down 10% and 9.9% respectively. But thanks to jumbo loan improvements, one economist says, 2007 could wind up being existing homes’ fifth-best year for sales. Prices are expected to come down 1.5% from last year’s record high median of $221,900; September’s $211,700 median was off 4.2% from last year.

A sign stands in front of a home that sits unsold on the market in southeast Denver on Tuesday, Oct. 16, 2007. (AP Photo/David Zalubowski) (Associated Press)

For sale signs line the street in front of a townhouse complex in San Jose, Calif., on Saturday, Oct. 6, 2007. (AP Photo/ Tony Avelar) (Associated Press)

A sign stands in front of a new home that sits unsold on the market in southeast Denver on Tuesday, Oct. 16, 2007. Problems in the housing industry intensified last month with construction of new homes... (Associated Press)

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Home Sales Hit Record Low Despite Dropping Prices

Sales of existing properties down 20.7% over last year

Top Chicago Homebuilder Goes Bankrupt

Neumann becomes second largest builder to fall in subprime collapse

Largest US Homebuilder Posts Biggest Losses Ever

Lennar stock drops after worse-than-expected earnings report

Bush Promises Mortgage Relief

Fed agencies to offer aid to help Americans during credit squeeze

Monthly Foreclosures Climb Again

Figures jump 93% over 2006; 1 in every 693 households in default

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OTHER STORIES ON OUR RADAR

housing market • subprime mortgages • credit market • home prices • home resales

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Home Sales Hit Record Low Despite Dropping Prices

Sales of existing properties down 20.7% over last year

Top Chicago Homebuilder Goes Bankrupt

Neumann becomes second largest builder to fall in subprime collapse

Largest US Homebuilder Posts Biggest Losses Ever

Lennar stock drops after worse-than-expected earnings report

Bush Promises Mortgage Relief

Fed agencies to offer aid to help Americans during credit squeeze

Monthly Foreclosures Climb Again

Figures jump 93% over 2006; 1 in every 693 households in default

About Us

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Newser By Users

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What is Newser?