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Home Prices Show Record Drop

Posted Aug 28, 07 11:21 AM CDT in US,  Business 

(Newser) – The credit market is continuing to weigh on economic indicators, Bloomberg reports, as home prices and consumer confidence both notched records in their downward swoon. A report released today showed home values down an unprecedented 3.2% in the second quarter. Consumer confidence this month fell to its lowest levels in two years.

Economists blame sagging sales and choosier mortgage lenders for the decline in home prices. “The pullback in the U.S. residential real-estate market is showing no signs of slowing down,” one economist said. A realtor trade group predicts housing demand will plummet to a five-year low this year. And the drop in consumer confidence could negatively impact consumer spending, which composes two thirds of the US economy.

Source Bloomberg

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Barry's store on Thursday, Aug. 16, 2007 in New York. Consumer confidence weakened in August as volatile financial markets and housing problems took a toll, a private research group said Tuesday, Aug....   (Associated Press)
"Inventories are high, so house prices are going to take the hit," said Haseeb Ahmed, an economist at JPMorgan Securities Inc. in New York. "They are going to go down further."   (Shutterstock.com)
Despite previous claims that the slump was being contained, federal officials are less than optimistic about the possibilities of the market bottoming out.   (Shutterstock.com)
Open house signs fill a corner in Altadena, Calif. on Sunday, Aug. 26, 2007. Sales of existing homes dropped for a fifth straight month in July, falling to the slowest pace in nearly five years, while...   (Associated Press)
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US economy • credit market • consumer confidence • home sales • Commerce Department • mortgage loans


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