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Home Sales Sink to 5-Year Low

Stats at 5-year low due to credit crunch

By Nick McMaster, Newser Staff

Posted Sep 25, 2007 12:52 PM CDT

(Newser) – Sales of previously owned US homes fell 4.3% in August, marking a 5-year low point and continuing the housing swoon growing out of the credit crisis. Although the drop was slightly less than expected, borrowing costs have risen and mortgage qualification has gotten harder, so demand is down and likely to continue falling, Bloomberg reports.

"The huge imbalance between demand and supply should put more downward pressure on home prices,'' said one economist. Sales were down 13% compared to a year ago, and the inventory of unsold homes stands at an unprecedented 10 months' worth. Some estimates foretell the current slump lasting until 2008; others indicate it might extend into 2009.

A lone sign stands sentry outside an unsold home on the market in a recently-built development in the northeast Denver suburb of Brighton, Colo., on Friday, Aug. 24, 2007. Sales of existing homes dropped... (Associated Press)

A sign stands outside an existing home for sale in the Country Club area southeast of downtown Denver, Monday, Sept. 24, 2007. Sales of existing homes, depressed by turmoil in credit markets, fell for... (Associated Press)

A sign stands sentry outside an existing home on the market in the Country Club area southeast of downtown Denver on Monday, Sept. 24, 2007. Sales of existing homes, depressed by turmoil in credit markets,... (Associated Press)

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Stats at 5-year low due to credit crunch

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$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Finally, Sun Through the Economic Clouds

Thanks to improving housing market, private debt: Paul Krugman

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Home Sales Sink to 5-Year Low

Stats at 5-year low due to credit crunch

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OTHER STORIES ON OUR RADAR

housing market • credit crisis • housing sales • housing crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Calif., NY May Sign On to Robo-Signing Settlement

Obama administration nearing deal for mortgage relief

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Finally, Sun Through the Economic Clouds

Thanks to improving housing market, private debt: Paul Krugman

About Us

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Newser By Users

Community

Site Maps

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More News

What is Newser?