Home Buying
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The housing industry continued its worst slump in more than two decades.

The National Association of Realtors reported the following:

Sales dropped by 2.6 percent last month to a seasonally adjusted annual rate of 4.86 million units. That was a much more severe decline that had been expected. Sales were 15.5 percent below where they were a year ago.

The downward slide in sales also affectec prices. The median price for a home sold in June dropped to $215,100, down by 6.1 percent from a year ago. That was the fifth largest year-over-year price drop on record.

Inventories of unsold single-family homes and condominiums were up by 0.2 percent to 4.49 million units. That number of unsold homes left an 11.1 month supply. It was the second highest level in the past 24 years.

On Wall Street, stock prices fell Thursday due not only to the drop in home sales but by a big loss reported by Ford Motor Co. The Dow Jones industrial average was down 145 points in early afternoon trading.

Sales of existing homes dropped in all regions of the country in June except the West, which posted a 1 percent sales increase. Sales fell by 6.6 percent in the Northeast, 3.4 percent in the Midwest and 3.1 percent in the South.

It is believed by many, that until the inventory level is reduced to more normal levels, the slump in housing is likely to persist.

Commerce Department Report

New home sales in the United States rose 3.3 percent in April following five months of decline.

The rise brought the figure of new home sales up to a seasonally adjusted annual rate of 526,000 units. This was still the lowest level since October 1991 and 42 percent below the level a year ago.

The revised data reveals that new home sales in March fell by 11 percent, to an annual rate of 509,000-the weakest pace for sales-since April 1991.

Regionally-Northeast-new home sales jumped by 41.7 percent in the last month. In the South, sales dropped by 2.4 percent, while that in the West gained 8.3 percent. Sales in the Midwest were up 5.8 percent.

The median price of a new home, declined last month to 246,100 U.S. dollars, down 4.2 percent from the level a year ago.

Inventories of unsold new homes at the end of the month of April, totaled 456,000 units.

Tax Tips-See also From IRS-Scams Feb. 3, Rebates Feb. 21, New biz tips, Feb. 26,

President Bush Meets with the Secretary of the TreasuryOval Office

THE PRESIDENT: Secretary Paulson, thanks for coming. And I just got back from the Middle East, and the Secretary came over to talk about the economy and how he sees it. And we're working through tough times, and I appreciate the leadership you're providing.

He did assure me that the refund checks are heading out, people getting that money. And that's good. It should help our economy, and more importantly, help people pay their bills. And we hope people use that money and take care of their families and shop.

President George W. Bush is joined by U.S. Treasury Secretary Henry Paulson Monday morning, May 19, 2008, in the Oval Office, where President Bush told reporters he looks forward to working with Congress to get a good piece of legislation to help creditworthy people to stay in their homes.

White House photo by Eric Draper I also asked him how he was doing in helping people stay in their homes. We spent time talking about the housing industry. And one of the really impressive programs has been the HOPE NOW program.

Since the program started, 1.4 million people got mortgage relief so they can stay in their home. And in the first quarter of this year, 500,000 households, 500,000 families were helped.

And I appreciate your leadership on that, Hank. It's been -- our policy in this administration is we -- laws shouldn't bail out lenders, laws shouldn't help speculators, the government ought to be helping creditworthy people stay in their homes. And one way we can do that -- and Congress is making progress on this -- is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.

The Secretary is briefing me on the progress being made on the Hill on this very important subject. Our fellow citizens have got to know that these major players in the mortgage markets, if reformed properly by Congress, will really help stabilize the markets and make it easier for people to stay in their homes.

And we look forward to working with Congress to get a good piece of legislation to my desk that helps our fellow citizens, and helps us get through this housing issue.

So, Mr. Secretary, thank you for your briefing. I appreciate very much your leadership on the issue.

Existing Home Sales Fall to Lowest Level in Nearly a Decade

Sales of existing homes fell to the lowest level in nearly a decade in January.

The median price for a home dropped for the fifth consecutive month.

According to The National Association of Realtors:

"Sales of single-family homes and condominiums dropped by 0.4 percent last month to a seasonally adjusted annual rate of 4.89 million units, the slowest sales pace on records going back to 1999.

Home Buying

The median price of a home sold in January slid to $201,100, a drop of 4.6 percent from a year ago.

The drop in sales and the fifth consecutive decline in prices underscored the continued pressure facing housing, which is struggling to emerge from its worst slump in a quarter-century.

Sales were weak in all parts of the country except the Midwest, where sales posted an increase of 3.4 percent. Sales dropped by 3.6 percent in the Northeast, 2.1 percent in the West and 0.5 percent in the South."

Home prices in 10 major metropolitan areas fell a record 8.4 percent through November 2008.

The decline is greater than the 6.7 percent annual drop for October and was deeper than predicted by economists. at The consensus was for a 7.1 percent.

Home prices in big cities have now declined for 11 consecutive months The decline rose to 2.2 percent in November over October, from 1.4 percent in the previous month.

Falling U.S. home prices in the past year have contributed to rising delinquencies and foreclosures. Homeowners in many cases are unable to get out of costly loans.

A cut in the Federal Reserve's target interest rate last week and another probable one on Wednesday offers some hope going forward. The Fed, last week cut its federal funds rate by 0.75 percentage point.

New Homes

WASHINGTON (AP) - New home sales plunged in 2007 by the largest amount on record while home prices tumbled sharply in December. Analysts forecast more trouble in 2008 as housing tries to emerge from its worst slump in more than two decades.

The Commerce Department reported Monday that sales of new homes dropped by 26.4 percent last year to 774,000. That marked the biggest decline on record, surpassing the old mark of a 23.1 percent plunge in 1980.

The government reported that the median price of a new home barely budged last year, edging up a slight 0.2 percent to $246,900, the poorest showing since prices fell by 2.4 percent during the 1991 housing downturn.

Previously Owned Homes

In 2007, the median price of an American single-family home fell.This was the first drop in at least forty years.

The median price declined 1.8 percent to $217,800, the first annual decline since reliable records began in 1968. Because of the uncertainty of records kept, before that, it may be the first drop going back to the Great Depression.

Over all, sales of previously owned single-family homes fell 13 percent in 2007, the biggest drop in about 25 years. Last month home sales dropped 2.2 percent from November, to a 4.89 million annual rate.

WASHINGTON -- Existing home sales fell 1.2 percent in October to a record low 4.97 million-units.

Prices of homes fell at a record pace as the inventory of homes for sales increased.

The median existing home price fell 5.1 percent from a year ago to $207,800.

The housing inventory rose 1.9 percent in October to 4.45 million existing homes for sale.

This represents a 10.8 month supply if the current pace continues.

The sales pace was the lowest since 1999.