Tuesday, November 18, 2008

We're Nowhere Near A Bottom In Housing

From Bloomberg:

Home prices fell in four out of every five U.S. cities in the third quarter, a record spurred by distressed foreclosure sales across the country, the Chicago-based National Association of Realtors also said today. The median price of a U.S. home fell 9 percent from a year earlier and sales of properties with mortgages in default accounted for at least a third of all transactions.

“We are in a crisis situation,” NAHB chairman Sandy Dunn, a builder from Point Pleasant, West Virginia, said in a statement. “Tremendous economic uncertainties have driven consumers from the housing market, and it’s going to take some major incentives to bring them back.”

When the year over year rate of price declines starts to level off we'll be near a bottom -- but not until then.