First, the bad news: Housing is still a mess, and is likely to be a drag on the consumer spending and the economy in 2008. Year-over-year sales dropped 20% from November 2006.
However, I am going to surprise a few people, and point out that this single month’s report actually has some good housing news in it:
– Purchases rose 0.4%;
– October sales were revised upwards;
– Median home price fell 3.3 percent.
– Existing homes for sale fell 3.6% percent to 4.27 million. That’s 10.3 months’ supply versus 10.7 in October.
The most astonishing piece of news in the NAR release was this dollop of reality that seemed to have accidentally crept in:
“Inventory is still high, and further reduction in prices may be
required in some areas to induce buyers back into the market”
-Lawrence Yun, NAR chief economist.
Of course, like a junkie, they just can’t help themselves, going back for another hit of that sweet, sweet shit:
“Near term, existing-home sales should continue to hover in a narrow
range, just as they have since September, and that’s good news because
it’ll be a further sign that the housing market is stabilizing,”
Sure it will. Once, crack, head, always a crack head . . .
Existing-Home Sales Rise in November, Market Likely Stabilizing
NAR, December 31, 2008