Existing-Home Sales Fall to 10-Year Low

Boston Globe (08/15/08)
The National Association of Realtors reports a 16-percent drop in sales of previously owned homes to an annual pace of 4.913 million in the second quarter from the same period last year, while the national median home price tumbled 7.6 percent to $206,500 from $223,500. Sacramento, Calif., and Cape Coral-Fort Myers, Fla., experienced the steepest drops in home prices of 36 percent and 33 percent, respectively, attributable to a rising number of foreclosure sales at substantially reduced prices. NAR says foreclosure or short sales accounted for approximately 33 percent of transaction volume in the last quarter. Meanwhile, the group reports a jump in housing inventory to 4.49 million, equivalent to an 11.1-month supply.