Sales of previously owned homes in the U.S. unexpectedly rose from a record low, propelled by the biggest slump in prices since the Great Depression as foreclosures surged.
Purchases rose 6.5 percent to an annual rate of 4.74 million from 4.45 million in November that was less than previously estimated, the National Association of Realtors said today in Washington. The median price dropped 15 percent from a year ago, the biggest decline since records began in 1968 and probably the biggest in seven decades, according to the group.
The housing slump at the center of the global credit crisis and economic downturn is likely to persist well into 2009, hurting companies such as Home Depot Inc. President Barack Obama has pledged to stem foreclosures and boost job creation to break the longest recession in a quarter century.
The index of leading economic indicators unexpectedly increased in December as the money supply expanded, a report from the Conference Board, a New York-based research group, showed today. The 0.3 percent increase was the first gain in six months and masked signs of a worsening recession. The index points to the direction of the economy over the next three to six months.
The median price of an existing home decreased 9.3 in 2008 from the prior year, also the biggest decline since records began and the biggest since the Great Depression.
Resales of single-family homes increased 7 percent to an annual rate of 4.26 million. Sales of condos and co-ops rose 2.1 percent to a 480,000 rate.
The rebound last month was led by a distressed-property related jump in the West, including California, Nevada and Arizona, the NAR said. Sales of distressed properties accounted for about 45 percent of all sales last month.
Home sales have been falling since 2005 and prices peaked in 2006. Property values are down by about 23 percent, according to the S&P/Case-Shiller index covering 20 metropolitan areas.
(Source: Bloomberg News)
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One Response
Is this good news? If a ship is sinking, the fact that it sinks faster is considered bad news. Good news would be an increase in sales, combined with a stabilization of prices.