Existing Home Sales Clunk Along Bottom

November 24, 2008

The NAR (National Association of Realtors) reported a setback in existing home sales during October in what increasingly appears to be an extended period of "clunking along a bottom" that began forming last year. Home prices are another matter entirely.
The median price for existing homes dropped to $183,300 in October, down a whopping 11.3 percent from a year ago, taking home prices back to levels last seen in 2004.

Of course, the NAR blames distressed sales and the unusually large number of lower-end homes being sold for the big price decline, citing "distortion" in the data. While these factors surely played a big role, it’s not like you can just dismiss them either and go on thinking that home prices, in the aggregate, are not tumbling in a big way.

Many sellers will be comforted to learn of this "distortion" in the price data and blithely go on attempting to sell their homes for unrealistic prices.

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Existing Home Sales Clunk Along Bottom

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