Home Resales See Small Surprise Rise

November figures don't mean relief from housing-market woes
By Nick McMaster,  Newser Staff
Posted Dec 31, 2007 12:48 PM CST
Home Resales See Small Surprise Rise
A new home is shown under construction Friday, Dec. 28, 2007 in a Columbus, Ohio subdivision. Sales of new homes plunged last month to their lowest level in more than 12 years, a grim testament to the problems plaguing the housing sector. (AP Photo/Kiichiro Sato)   (Associated Press)

Existing-home sales rose unexpectedly in November, although not enough to suggest that the economy is over the housing slump, Bloomberg reports. Resales rose 0.4% to an annual rate of 5 million, up from October’s record-low pace, but the year-over-year figure represents a 20% drop. The median price dropped 3.3% relative to November 2006, to $210,200.

"There are some mixed signals coming from the housing market and I think overall the trend is toward weaker sales in the next quarter,'' said one economist. Home supply in November fell 3.6% to 4.27 million, or 10.3 months' supply—still high enough to suggest that further price cuts may be needed to stimulate sales growth, especially as stricter mortgage credit rules exert downward pressure on sales. (More housing market stories.)

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