Housing Slump Continues!
At the current existing-home sales rate of 5.04 million units a year, it would take a full 10.5 months to sell the 4.4 million existing homes now on the market, according to data released by the National Association of Realtors on Oct. 24. The supply of existing single-family homes was at 10.2 months in September—the highest since February, 1988. Compare that with the height of the housing boom in January, 2005, when it reached a record low 3.6 months.
The housing decline in some former boom areas, such as the New Jersey shore is even more dramatic. Prices in some areas are declining rapidly with sales prices more than 1/3 off their peak.
Today’s 1/4 point drop in rates by the Federal Reserve Board should help stablize mortgage interest rates. This may slow the housing decline
