National home sales down 22%

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News item: The National Association of Realtors reports that sales of existing homes in December were 22% below year-ago levels, and 2.2% below November’s sluggish sales pace. The AP via CNBC: ‘Sales of existing homes fell in December, closing out a horrible year for housing in which sales of single-family homes plunged by the largest amount in 25 years. The median home price dropped for the entire year, the first time that has occurred in four decades.

The NAR -- often criticized by readers here for its bullishness -- acknowledged that home sales ‘remain weak.’ From the NAR press relase: Lawrence Yun, NAR chief economist, said the market is experiencing uncharacteristic weakness. ‘Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate,’ he said. ‘Home prices are lower, mortgage interest rates continue to decline and incomes are higher, but many potential buyers are delaying a purchase.’

More to come.

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