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Housing Bubble Deflation Continues

unlawflcombatnt

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Evidence continues to mount that the housing bubble is deflating. December existing home sales declined 6% to 6.60 million per year from November's 7.0 million annual rate. This was a much larger decrease than the predicted decline of 6.87 million annual rate. This marks the 3rd consecutive monthly decline in existing home sales. Inventories of unsold homes continue to rise. This months increase to a 5.1 month supply is also the 3rd consecutive month on increased unsold homes. The annual rate of price increase declined to 10.5% year-over-year, which marks the 2nd consecutive month of decline in annual appreciation rate. (This is the result of 2 straight months of monthly price declines.)

It is also anticipated that the release of next week's New Home Sales number will also show a decline in the annual rate of sales.

Below is a copy of the page from today's Briefing.com Existing Home Sales report:



The direct "Briefing.com" link for this can be found at:
Existing Home Sales

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EconomicPopulistCommentary

Economic Patriots' Forum
 

danarhea

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unlawflcombatnt said:
Evidence continues to mount that the housing bubble is deflating. December existing home sales declined 6% to 6.60 million per year from November's 7.0 million annual rate. This was a much larger decrease than the predicted decline of 6.87 million annual rate. This marks the 3rd consecutive monthly decline in existing home sales. Inventories of unsold homes continue to rise. This months increase to a 5.1 month supply is also the 3rd consecutive month on increased unsold homes. The annual rate of price increase declined to 10.5% year-over-year, which marks the 2nd consecutive month of decline in annual appreciation rate. (This is the result of 2 straight months of monthly price declines.)

It is also anticipated that the release of next week's New Home Sales number will also show a decline in the annual rate of sales.

Below is a copy of the page from today's Briefing.com Existing Home Sales report:



The direct "Briefing.com" link for this can be found at:
Existing Home Sales

___________________________________

EconomicPopulistCommentary

Economic Patriots' Forum
Here in Houston, things are quite different, as the tens of thousands of Katrina evacuees are still causing the housing and rental markets to stay well above their normal level. However, as soon as the government money runs out, and as evacuees leave, the shock will be sudden. At the present time, most of the market is grossly overpriced, due to this unusual situation, although, in new construction, prices have fallen somewhat. You can buy a brand new house in Houston for as low as $104,000, but I wouldn't trust the quality of those homes.
 
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