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US Existing Home Sales Suggest Housing Outlook Remains Bleak
Monday, 24 November 2008 15:57:02 GMT  |  Terri Belkas, Currency Strategist
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The National Association of Realtors reported this morning that US existing home sales fell 3.1 percent during the month of October to an annual rate of 4.98 million. While this is still above the August low of 4.91 million, a further breakdown of the report shows that condo/co-op sales alone fell 1.8 percent in October and a whopping 12 percent from a year earlier. Meanwhile, total inventories of previously owned homes have edged back up to 10.2 months despite an 11.3 percent drop in median home prices from a year earlier to $183K. This is actually the largest price decrease since record-keeping began in 1968. With prices still falling and supplies still growing, it is clear that the housing market is far from stable. Furthermore, given the broad downside risks to the US economy, home sales may be bound to fall further.

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