CNN: "Home sales slowed more than expected from June's record pace"

[Bush_Eats_Beef]

Home sales slow
Real estate numbers show existing home sales slowed more than expected from June's record pace.
August 23, 2005: 10:35 AM EDT

http://money.cnn.com/2005/08/23/news/economy/homesales/index.htm?cnn=yes

NEW YORK (CNN/Money) - Sales of existing homes slowed in July from their record pace as the latest reading on the strength of the real estate market came in below Wall Street expectations. The report from the National Association of Realtors showed that existing homes sold at an annual pace of 7.16 million in July, down from the revised 7.35 million sales rate in June. The July sales pace was still the third strongest month on record.

Economists surveyed by Briefing.com had forecast the pace of home sales would slip to 7.25 million in July. "This is a big number any way you slice it, and housing is continuing to stimulate the overall economy," said a statement from David Lereah, the trade group's chief economist. The 7.16 million sales pace trailed only June and April 2005, when sales came in a 7.18 million rate.

Still the weaker than forecasted number, coupled with growing attention about the importance of the strength of the real estate market to consumer spending and the overall economy, sent U.S. stocks somewhat lower immediately after the report.

Home prices were essentially flat, as the national measures of both median and average home prices increased less than 1 percent from June levels. The median price, the point at which half the homes sold cost more and half cost less, came in at $218,000 compare to $217,000 a year earlier, while the average home price edged up to $267,000 from $266,000.

[Systematic Chaos]

1. Ah yes. Here it comes.

Save me a place in the soup line, will ya? :scared:

[MadHound]

2. Yeppers, the bubble is starting to burst

Combine this with inflation, soaring gas prices, low consumer confidence, and we're looking at a perfect economic storm. Please buckle your seatbelts and lock your seats in an upright and secure position, it is going to be a very rough landing.

[Extend a Hand]

3. and don't forget

the doubling of credit card minimum payments -- and the new bankruptcy bill taking effect 10/17.

[MadHound]

5. Yeah, you're right

I forget about credit card matters, since I've never had a card, nor do I ever want one.

And somewhere in corporate headquarters, hands of the "haves and have mores" are rubbing together with glee, while visions of an imminent "buying opportunity" dance through their heads.

[catmandu57]

4. We're not in a hot market area, but,

I can tell you that sales of homes have slowed down here, I keep my eye on the real estate signs around town, I've noticed the same houses with for sale signs now for several months.
Next door to us there is a duplex that the owner put up for sale in May, it's still empty, now she's trying to rent it out.

[DemocracyInaction]

6. Prediction: It's going to be a very bleak Christmas in the US of A

The whole storm is going to come ashore this fall when people start dealing with heating prices for openers. Between that and the ever rising prices at the pump and the ever rising EVERYTHING because of oil expenses being added in and because government units are now having their budgets go down the toilet because of oil prices (school buses, heating schools, emergency vehicles, snow plowing, etc.), everything will so somother the average American that they will slam their pocketbooks shut. That will bring down many businesses and yuppieville will start seeing lay offs of white collars. As they are stuck with their McMansions and try to panic sell, real estate will drop like lead. By the spring, republicans will be sweating under the armpits about being re-elected. And the Dems, probably, will take no advantage of the country's mood and blow their chances down the crapper again..as usual.

[Javaman]

7. I live in Austin...

And on my daily bike ride to work, I pass through a really nice funky neighborhood, that (it seems) everyone in Austin would love to live in. I would love to live there. lol

And over the course of several months, various houses go on sale and are usually snapped up pretty quickly.

However, times are changing.

Several of the house up for sale have been that way for several weeks. Now, just yesterday, on my ride home, several of the houses up for sale had new signs on them. Price reduced or new reasonable price, etc...

Folks, it happening. The prices are dropping because no one in their right mind is going to pay the asking price any longer. Sanity meets reality.

colossal failure*