Existing home sales tumble in March...Biggest monthly slide in nearly two decades

[ProSense]

Existing home sales tumble in March

Trade group: Biggest monthly slide in nearly two decades

BREAKING NEWS

Updated: 13 minutes ago

WASHINGTON - Sales of existing homes plunged in March by the largest amount in nearly two decades, reflecting bad weather and increasing problems in the subprime mortgage market, a real estate trade group reported Tuesday.

The National Association of Realtors reported that sales of existing homes fell by 8.4 percent in March, compared to February. It was the biggest one-month decline since a 12.6 percent drop in January 1989, another period of recession conditions in housing. The drop left sales in March at a seasonally adjusted annual rate of 6.12 million units, the slowest pace since June 2003.

The steep sales decline was accompanied by an eighth straight fall in median home prices, the longest such period of falling prices on record. The median price fell to $217,000, a drop of 0.3 percent from the price a year ago.

Consumer confidence falls in April

By ANNE D'INNOCENZIO, AP Business Writer

NEW YORK - Consumer confidence crumbled in April as rising gasoline prices undermined how Americans feel about the prospects for economic growth, a widely watched gauge of the economy showed on Tuesday.

The New York-based Conference Board said its Consumer Confidence Index dropped to 104.0, in April, down from a revised 108.2 in March. Analysts had expected a reading of 105. The April reading was the lowest since August, when the index was at 100.2.

The Present Situation Index, which measures how shoppers feel now about economic conditions, decreased to 131.3 from 138.5 in March. The Expectations Index, which measures consumers' outlook for the next six months, declined to 85.8 from 87.9.

"Unlike the decline in March, which was solely the result of apprehension about the short-term outlook, this month's decline was a combination of weakening expectations and a less favorable assessment of present-day conditions," said Lynn Franco, director of The Conference Board Consumer Research Center, in a statement. "Rising prices at the gas pump continue to play a key role in dampening consumers' short-term expectations."

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[Systematic Chaos]

1. If the MARCH drop was that big due in part to "bad weather"...

...then what is that huge hurricane wannabe that slammed the whole eastern seaboard last week gonna do to the sales for April? :eyes:

[snappyturtle]

2. Fair and balanced?

I think you should quit reporting all the bad news about the economy and find the good news about it! After all, the DOW is close to an all time high! :sarcasm:

[Javaman]

5. the dow...

this period of time reminds me of the late 1920's when the stock market was in serious shape. Many many fluctuations over a period of several months was causing people to worry, but not so much as to keep them from buying on margin. As a result, the economy was taking a major hit because it was not able to cope with the wildly inflated numbers. So all the rich bastards started buying up huge amounts of stock to bolster the dow when it would drop (or as they say now, correct itself), but what was happening was, as those fools bought up huge amounts, the average slob peon was then buying more and more on margin thinking it was a good bet because the wealthy guys were doing it, thus driving the already overly inflated numbers even higher to the point that even the rich guys could no longer have an effect upon the market. Thus the crash.

the economy now as it was back then was based upon unreported stats or a budget that didn't quite keep up with what was actually happening to the economy. (or conveniently forgetting the cost of the war). That "lag" or willful deletion of numbers made things look rosy when the value of the dollar was taking a dive.

[snappyturtle]

10. I'm no economist but when I look at

the overall situation of many people in the country and listen to the MSM about how good the DOW is..it is as if that's all they're concerned about. Your explanation makes more than good sense to me.

When I watch TV today it's the advertisements that I find interesting and probably an indicator of what's really happening in the nation. We're bombarded with ads for refinancing,advance loans on paychecks,credit card debt relief....to the point that "settling for less than you owe" is a come on. Then we have the pharmeceutical ads for drugs we should request prescriptiions for to cure or mask all our ills. Maybe you're not old enough, but ads used to be about the best detergents, toothpastes, etc. Something is screwy. Sorry, I got way out here but............

[partylessinOhio]

3. Yet our county and local governments keep raising our property taxes

on our decaying homes that many of us cannot afford to maintain as we should. Our taxes should be falling as our values decline. But these greedy politicians and school boards lobby to reevaluate property values upward every three years to keep their coffers overflowing.

[Javaman]

6. We have built up a fiat economy.

now that the dollar is in steady decline around the world, all sorts of things are going to go up. Property taxes will climb because of the over built suburbs that offer all sorts of various improvements to the community still have to be paid for.

Once the falling value of the dollar finally hits the economy in ernest, property values will be the least of our problems.

[bouwob1]

4. one more bush disgrace

How long have we been hearing that homesales are at an all time high do to a fantastic economy? Over and over and over again. I am worried about 2008. Bush has single handedly destroyed the middle class, our armed forces, health care, the value of the dollar and befor he leaves the economy and housing market.

I honestly didnt know 1 person could f... so much up.

[partylessinOhio]

7. Don't forget destroying social security. Privatization was on the board

again this am on C-Span.

[Javaman]

8. I just reread and old article chronicling moron* "purchase' of the

Texas Rangers.

The colossal ineptitude displayed by that dolt is to marvel. He* basically didn't do a thing other than be a bush. Rainwater was the guy who put the deal together. Without him nothing would have happened and moron* would have been just a footnote as a failed businessman and the son* of a president.

Everyone always compares moron to King George the III. Frankly, I think he's more like Louis the 16th.

The slow witted, if not outright retarded, last king of France, who wanted to do nothing but play with locks all day. (in morons* case it's baseball)

[The Cleaner]

9. It's a GREAT Time to buy a house! Get in while you can! Prices are rising; etc. :eyes:

:sarcasm:

So say real estate professionals and economists. This happens every market bubble. A sudden drop, and they all come out of the wood work proclaiming how things have bottomed out and how its suddenly THE time to buy and if you want in - you better get in NOW.

A few weeks ago I even heard a guest on the Today Show say if you didn't get in a couple months ago you've lost your chances b/c prices are going UP and the good times are here again! Yeah RIGHT!!

:eyes: