Wow. These numbers were much worse than even I expected.
The 4.1% drop in US Median Home Value from October is the most shocking - that number folks is nationwide. So if you bought a home for $500,000 in October, it's now worth $20,000 less. Ouch. Pretty tough 30 day loss. And we're just getting started.
No Santa Claus rally for those beaten down homebuilder stocks... Hope "the banker" had stop-losses in...
Sales of new homes plunged in November by the largest amount in nearly 12 years, providing the most dramatic evidence yet that the red hot housing market over the last five years is starting to cool down.
Some of that price moderation was evidenced in the November report, which showed that the median price of a new home sold was $225,200 last month. That was up just 0.3 percent from November 2004, the weakest year-over-year price change in two years. The November median price was down 4.1 percent from the October median sales price of $234,800.
Some economists are worried that housing prices in some areas have been driven higher by a speculative frenzy that could see prices plunging as sales slow in the hottest markets. That scenario would evoke memories of the sharp declines that occurred when the stock market bubble burst in early 2000.
December 25, 2005
Posted by blogger at 12/25/2005