Sales of new homes plunged by a record amount in 2007 while prices posted the weakest showing in 16 years, demonstrating the troubles builders are facing with a huge backlog of unsold homes.
New home sales posted the biggest drop on record in 2007, according to the government’s latest look at the battered housing market, as a year that saw a meltdown in the mortgage market and a drop in home values ended with yet more signs of weakness.
December sales came in at an annual rate of 604,000, the Census Bureau report showed, down from 634,000 in November, which was also revised lower.
The reading was well below the consensus forecast of 645,000, according to economists surveyed by Briefing.com.
. . . No bottom yet Adam York, an economist with Wachovia, said the report confirms fears that the housing market won’t bounce back anytime soon.
“We’re expecting sales to decline into at least mid-2008,” he said. “We think housing still has a long way to go.” [emphasis added.
What is there to add to that? I keep hearing that “we’re at a bottom.” I got yer bottom, right here.