Post by unlawflcombatnt on Mar 4, 2006 13:45:16 GMT -6
Signs of a decline in the housing market continue to increase. January sales of existing homes dropped to their lowest level in 2 years, according to a March 1 article in the New York Times by Vikas Bajaj. Sales of existing homes fell 2.8% in January, according to the National Association of Realtors. January was the 5th consecutive month of decline in existing home sales. The annual rate of sales has declined 10% since September 2005.
The "supply" of homes on the market has greatly increased over the last year. At the end of January 2006, the number of homes available for sale was 35.7% greater than a year earlier. According to the NYT article, this increased the supply of homes from a 5.1 month supply in December to a 5.3 months supply in January.
Though the median price of existing homes continued to rise on an annual rate, that annualized appreciation rate is generally declining. The annual rate of price increase was 11.6% in January, slightly higher than the annualized rate in December. However, it was less than the 13.2% annualized increase in November and less than the 16.6% rate in October 2005. Thus, with exception of the December to January period , the annualized sales rate has continued to decline. Existing Home Sales information can also be found at Briefing.com's Existing Home Sales.
New Home sales showed an even bigger decline in January, with the annualized rate declining 5.3% to 1.233 million/year from December's 1.298 million/year. This is a 9% decline in the annual sales rate from October's peak of 1.345 million/year. January's New Home inventory (supply) increased to 5.2 months worth from December's 4.8 months inventory. January's inventory rise represents a 15% increase since October's 4.5 month supply. New Home sale information can be found at Briefing.com's NewHomeSales.
In summary, both new home and existing home sales are declining, while inventories continue to rise. The rate of price appreciation is declining, if not the actual price. In some major areas (such as Southern California) the prices themselves are declining. Most evidence indicates the housing bubble is leaking. Only time will tell how much it will leak and how fast.
The "supply" of homes on the market has greatly increased over the last year. At the end of January 2006, the number of homes available for sale was 35.7% greater than a year earlier. According to the NYT article, this increased the supply of homes from a 5.1 month supply in December to a 5.3 months supply in January.
Though the median price of existing homes continued to rise on an annual rate, that annualized appreciation rate is generally declining. The annual rate of price increase was 11.6% in January, slightly higher than the annualized rate in December. However, it was less than the 13.2% annualized increase in November and less than the 16.6% rate in October 2005. Thus, with exception of the December to January period , the annualized sales rate has continued to decline. Existing Home Sales information can also be found at Briefing.com's Existing Home Sales.
New Home sales showed an even bigger decline in January, with the annualized rate declining 5.3% to 1.233 million/year from December's 1.298 million/year. This is a 9% decline in the annual sales rate from October's peak of 1.345 million/year. January's New Home inventory (supply) increased to 5.2 months worth from December's 4.8 months inventory. January's inventory rise represents a 15% increase since October's 4.5 month supply. New Home sale information can be found at Briefing.com's NewHomeSales.
In summary, both new home and existing home sales are declining, while inventories continue to rise. The rate of price appreciation is declining, if not the actual price. In some major areas (such as Southern California) the prices themselves are declining. Most evidence indicates the housing bubble is leaking. Only time will tell how much it will leak and how fast.