Has the Housing market Hit Bottom?

Sales of existing homes posted a tiny increase in October but the median home price fell by a record amount. Analysts forecast more price declines in coming months as the once-booming housing market undergoes a painful correction.
The National Association of Realtors announced on Tuesday that existing home sales were up 0.5 percent. This market the first increase in existing home sales after seven straight bad months. However, the median home price was $221,000 which is 3.5% under what it was in October 2005 (this is the biggest drop ever).
However, the median price for a home sold dropped to $221,000 in October, a decline of 3.5 percent from a year ago. That was the biggest year-over-year price decline on record.
Many buyers are waiting for the bottom of the market and many predict that it will continue to get worse before it gets consistently better. Many others believe that this housing decline could be the impetus for a recession for the U.S. economy.

Written by Nagel on November 29th, 2006 with no comments.
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