Four out of five economists agree, the housing market will remain depressed for at least the next several months.
Economists agreeing on something? That’s even more disturbing news.
From the Journal:
Sales of existing homes inched up in November. The National Association of Realtors reported that sales of previously occupied single-family homes, condominiums and townhouses rose 0.4% in November from October, to a seasonally adjusted annual rate of 5 million units. Over the last 12 months, however, existing home sales have plunged 20%. Here are economists’ reactions.
Year-on-year prices have been declining for the past 16 months and shows no signs of bottoming out. Bottom line: Existing home sales peaked during the summer of 2005 and have since fallen by more than 30%. Given the weakness in home prices, the huge inventory of unsold homes, the recent tightening in the mortgage market, and the virtual elimination of the subprime market, further significant declines are coming. The housing correction is definitely not complete. — Insight Economics
Source: Economists React: ‘No Signs’ of Home Sales Bottoming Out – Economics Blog, The Wall Street Journal