Associated Press
Home Sales Hit Slowest Pace in 5 Years
By MARTIN CRUTSINGER 08.27.07, 3:52 PM ET
WASHINGTON – Sales of existing homes dropped for a fifth straight month
in July while the number of unsold homes shot up to a record level.
Many analysts said the worst slump in housing in 16 years is likely to deepen
in coming months, reflecting the recent turmoil in credit markets, which
has caused lenders to tighten their standards.
The National Association of Realtors reported Monday that sales of existing
homes dipped by 0.2 percent in July, compared to June, to a seasonally adjusted
annual rate of 5.75 million units.
The median price of a home sold last month slid to $230,200, down by 0.6
percent from the median price a year ago. It marked the 12th consecutive
month that home prices have declined, a record stretch.
The deep slump in housing, combined with recent severe turmoil in financial
markets, has raised worries about a possible recession. But many economists
believe the Federal Reserve will ward off a full-blown downturn by reducing
a key short-term interest rate should financial market conditions fail to
stabilize.
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http://www.forbes.com/feeds/ap/2007/08/27/ap4057579.html
