Graphic courtesy of NYT
Interesting graphic from Floyd Norris this morning in the NYT (above) from the article The Long Life Span of a Housing Downturn:
"The trends in home sale numbers are similar, however. In the first
couple of months after the peak, sales did not slip as much in 1989,
but by the ninth month they were off about as much as they are now,
with new-home sales particularly hard hit.
One thing that was
very different at the 1989 peak from the one in 2006 was the trend in
the number of homes being offered for sale. When prices peaked in 1989,
the number of homes for sale was already declining, and it continued to
fall for some months, perhaps reflecting decisions by homeowners to
hold on and wait for prices to come back.
In 2006, however, the
number of homes for sale rose as the peak neared, and the latest report
shows that more than 4.1 million homes were for sale at the end of
April, the largest number ever. That included almost 3.6 million
existing homes, also a record high."
The Long Life Span of a Housing Downturn
NYT, June 2, 2007