USA Today
WASHINGTON (AP) — Sales of existing homes fell in 38 states during the third quarter, led by steep declines in Nevada, Arizona, Florida and California, as the once-booming housing market showed further signs of a steep slowdown.
The National Association of Realtors said Monday that sales dipped to a seasonally adjusted annual rate of 6.27 million units nationwide, down by 12.7% from the period a year ago.
The declines were largest in once-booming areas of the country. Sales fell 38% in Nevada, 36% in Arizona; 34.2% in Florida and 28.6% in California.
Nine states had sales declines of 20% or more compared with the third quarter of 2005.
The weakness in sales also affected prices, with 45 metropolitan areas experiencing price declines, according to a separate survey the Realtors did of 148 metropolitan areas.
The price survey showed that the median — or mid-point — price for an existing home sold in the third quarter dipped to $224,900, down 1.2% from a year earlier.
Sales rose in 10 states. In two states — New Hampshire and Vermont — the Realtors did not have data available.
The nationwide 12.7% drop in sales was from a 2005 pace of 7.18 million units, which was the second highest in history. The all-time record sales pace was an annual rate of 7.19 million units in the April-June quarter last year.
Sales of both existing and new homes set records for a fifth consecutive year in 2005 but have been falling steadily this year.
The plunge in housing shaved a full percentage-point off economic growth in the July-September quarter with economists predicting a similar reduction in this quarter.
But David Lereah, the Realtors’ chief economist, said he believes price declines in formerly red-hot areas of the country are setting the stage for a rebound next year.
“With the market in full transition, buyers now have choices and sellers are more willing to negotiate,” he said. “Under these circumstances, it’s no surprise that overall home prices are slightly below a year ago.”