Released: August 28, 2007

Home sales go from bad to worse

Source: Noelle Knox, USA Today

The news Monday from the National Association of Realtors was bad enough: Sales of existing homes fell in July to their slowest pace in five years. The glut of homes for sale is at a 16-year high. The median price is down for a record 12th month in a row.

What’s really grim, though, is this: None of the figures reflect this month’s turmoil in the mortgage market. Which is why the numbers will likely be even worse in coming months. And why the NAR doesn’t expect the housing market to recover until early next year.

“Unfortunately, worse news lies ahead,” said Nigel Gault, U.S. economist for Global Insight. “That will mean more foreclosures and fewer qualified buyers, adding up to lower home sales and prices. It is hard to see a bottom before mid-2008.”

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